CHAPTER 12 Resource Manager CHAPTER 12 Resource Manager · 2018. 9. 7. · This innovative integration of electronic and print media offers your students a wealth of opportuni-ties.

You and your students can visit ett.glencoe.com—the Web site companion to Economics Today andTomorrow. This innovative integration of electronic andprint media offers your students a wealth of opportuni-ties. The student text directs students to the Web site forthe following options:

• Chapter Overviews • Student Web Activities

• Self-Check Quizzes • Textbook Updates

Answers are provided for you in the Web ActivityLesson Plan. Additional Web resources and InteractivePuzzles are also available.

Use the Glencoe Web site for additional resources. All essential content is covered in the Student Edition.

ECONOMICS

Reading for the StudentMurray, R. Emmett, and Thomas Geoghegan. Lexicon of

Labor: More Than 500 Key Terms, Biographical Sketches, andHistorical Insights Concerning Labor in America. New York:New Press, 1998. A guide to labor in the United States.

Reading for the TeacherKaufman, Bruce E. The Economics of Labor Markets.

Hindsdale, IL: Dryden Press, 1997.

Additional Resources

Spanish Economic Concepts Transparency 16

Spanish Vocabulary Activity 12

Spanish Reteaching Activity 12

Spanish Section Quizzes for Chapter 12

Spanish Chapter 12 Audio Program, Activity, and Test

Spanish Resources

Vocabulary PuzzleMaker Software

Interactive Tutor Self-Assessment Software

ExamView® Pro Testmaker

NBR Economics & You Video Program (English/Spanish)

Presentation Plus!

Glencoe Skillbuilder Interactive Workbook CD-ROM,Level 2

Interactive Lesson Planner

MindJogger Videoquiz

Interactive Economics! CD-ROM

Audio Program (English or Spanish)

Technology and Multimedia

Assessment and Evaluation


PROCEDURE

1. Organize the class into groups of six. Each group should have three members representing management andthree representing labor who are to negotiate a new union contract. The current contract states:

a. All workers receive $5 per hour for a 45-hour workweek that includes 30 minutes for lunch each day.b. Each worker may take two days of sick leave per year.c. The company pays $25 of each worker’s $130 health-insurance premium each month.

d. Workers may take two weeks unpaid vacation each year.

Management wants to keep the same contract. The workers want to improve pay, working conditions, and benefits.

2. Have the groups negotiate for about 15 minutes and write up a contract. Use the negotiations as the basis for aclass discussion on collective bargaining and other tactics used in negotiations.

3. Distribute copies of the following scenario to each of the groups. Let them read the scenario and answer thequestions. For each choice, they should give possible effects on both labor and management.

SCENARIOSuppose the economy is in a recession and jobs are hard to find. Some large corporations, however, are makinglarge profits. Farris Meats, one of the leading meatpackers in the United States, is doing extremely well. Assumethat Farris Meats has a factory in your hometown of Faithful. Faithful has a population of about 10,000 and atleast 4,000 of those work at the Farris factory. In one month, the current contract at the factory will expire.Rumor has it that Farris intends to cut wages from $11 an hour to $10 an hour in only the Faithful factory. All ofthe 4,000 workers at the factory belong to a national union of meatpackers. The local chapter in Faithful wantsto go on strike, so they contact the national union officials to drum support for their strike. When contract nego-tiations begin one month later, management will not budge. What would happen if:

a. the local union in Faithful strikes without support of their national union?b. Farris picks up the slack in the other factories and closes the Faithful factory?c. the national union supports the local union in Faithful?d. the local union goes on strike without the support of the national union and the Farris Company tells the

local union that they have three months to go back to work or they will be replaced permanently?

e. against national union advice, some other workers in other cities go on a sympathy strike?

Assessment

1. Have students do a research paper on a historical or current labor dispute.

▼ BACKGROUND

The labor movement has tried to organizeworkers to deal with management more efficiently and to settle disagreements through negotiations rather than throughwork stoppages.

▼ MATERIALS

Copies of the scenario of Farris Meats

▼ OBJECTIVES

After completing this activity, students will beable to• Define collective bargaining, mediation,

and arbitration.• Examine the impact of unions and strikes on

management and labor.

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L ABOR

Name Date Class

RUBRICSresearch paper, anissue controversy

13

Performance Assessment Activity 13

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Name Date Class

12, A

13. The Taft-Hartley Act of 1947

a. strengthened the labor union movement in the United States.b. outlawed closed shops.c. gave local unions the power to negotiate on behalf of their members.d. made it illegal to form a monopoly.

14. Collective bargaining is the process in which

a. bosses give raises to their employees.b. workers receive annual raises as long as productivity rises.c. workers who are laid off receive unemployment benefits.d. unions and employers negotiate the conditions of employment.

15. In 1955, the craft and industrial unions merged forming the

a. AFL-CIO. b. American Federation of Labor.c. National Association of unions. d. United Steelworkers of America union.

Directions: Answer each of the following sets of questions on a separate sheet of paper.

CRITICAL THINKING QUESTIONS

16. Sequencing and Categorizing Information Describe the three levels of unions, and explain the functions of each.

17. Making Comparisons What is the difference between an industrial union and a craft union?

APPLYING SKILLS

Using Graphs Study the graph and answer the questions below.

18. How did union membership change between 1945 and 1997?

19. What percentage of U.S. workers were members of labor unions in 1975?

20. If the trend shown in the chart continues, what percentage of U.S. workers would you forecast to be unionmembers by 2010?

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'50'40 '60 '70 '80 '90 '95 '97'45 '55 '65 '75 '85

Union Membership, 1940–97

Year

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35

30

25

20

15

10

5

0

*Before 1983 = percent of nonagricultural employees. 1983–1996 = percent of emplyed wage and salaried workers.

Source: Bureau of Labor Statistics, 1996

Chapter 12 Test Form A

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Name Date Class

SCORE

12, A

T HE AMERICAN LABOR FORCE

RECALLING FACTS AND IDEAS

Multiple Choice: In the blank at the left, write the letter of the choice that best completesthe statement or answers the question.

11. The largest sector of the American labor force is

a. blue-collar workers. b. white-collar workers.c. service sector workers. d. manual workers.

12. Right-to-work laws have resulted in

a. tougher union membership requirements. b. unions having less power.c. increased employee benefits. d. increase in union dues.

A1. closed shop

2. labor union

3. strike

4. white-collar workers

5. collective bargaining

6. minimum wage law

7. right-to-work laws

8. cost-of-living adjustment

9. blue-collar workers

10. lockout

USING KEY TERMS

Matching: Match each item in Column A with the items in Column B. Write the correctletters in the blanks.

Ba. workers employed in crafts, manufacturing, and non-farm

labor

b. federal law that sets the lowest legal hourly wage rate thatmay be paid to certain types of workers

c. process by which unions and employers negotiate the condi-tions of employment

d. state laws forbidding unions from forcing workers to joinunions and pay union dues

e. provision providing for an additional wage increase each yearif the general level of prices in the economy rises beyond acertain level

f. company in which only union members may be hired

g. association of workers organized to improve wages and work-ing conditions for its members

h. deliberate work stoppage by workers to force an employer togive in to their demands

i. situation in which management prevents workers from return-ing to work until they agree to a new contract

j. workers employed in offices, sales, or professional positions

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Name Date Class

12, B

13. The practice of asking the public not to purchase good or services produced by a company whose workersare on strike is known as

a. picketing. b. boycotting.c. mediating. d. arbitrating.

14. A deliberate work stoppage by employees is called

a. an illegal stoppage. b. a closed shop.c. a strike. d. a lockout.

15. The minimum wage law may

a. increase unemployment among teenagers and minorities.b. increase the supply of low-paying jobs.c. establish a limit on the amount of wages employers can pay.d. prevent strikes by increasing wages.

CRITICAL THINKING QUESTIONS

Directions: Answer each of the following sets of questions on a separate sheet of paper.

16. Distinguishing Fact from Opinion Why do you think some people support minimum wage legislationand others oppose it? What positive and negative effects can such legislation have?

17. Making Predictions Given past trends and changes in American business, what do you think is likely tohappen to union membership in the twenty-first century?

APPLYING SKILLS

Using Graphs Study the graph and answer the questions below.

18. What has happened to union membership over the past several decades?

19. During which year shown in the graph was union membership highest?

20. How does the graph reflect the move toward a service-based rather than a manufacturing-based economy sincethe 1970s?

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'50'40 '60 '70 '80 '90 '95 '97'45 '55 '65 '75 '85

Union Membership, 1940–97

Year

40

35

30

25

20

15

10

5

0

*Before 1983 = percent of nonagricultural employees. 1983–1996 = percent of emplyed wage and salaried workers.

Source: Bureau of Labor Statistics, 1996

Chapter 12 Test Form B

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Name Date Class

SCORE

12, B

T HE AMERICAN LABOR FORCE

RECALLING FACTS AND IDEAS

Multiple Choice: In the blank at the left, write the letter of the choice that best completesthe statement or answers the question.

11. An injunction is a

a. process by which union and management representatives reach an agreement.b. court order preventing an activity.c. rule that prevents nonunion members from working. d. stage of the negotiation process in which both sides submit issues on which they cannot agree to a

neutral third party.

12. Collective bargaining is the process by which

a. groups of employees in an open shop negotiate for raises.b. groups of employees in a closed shop negotiate for raises.c. union and employers negotiate the conditions of employment.d. striking workers negotiate with management about returning to work.

A1. skilled worker

2. right-to-work laws

3. closed shop

4. minimum wage law

5. agency shop

6. white-collar worker

7. industrial union

8. service worker

9. semiskilled worker

10. mediation

USING KEY TERMS

Matching: Match each item in Column A with the items in Column B. Write the correctletters in the blanks.

Ba. person who learns a trade or craft

b. worker employed in an office, sales, or professional position

c. state laws forbidding unions from forcing workers to joinunions and pay union dues

d. person who provides services directly to individuals

e. stage in contract negotiations between union and manage-ment in which a neutral person steps in to try to get bothsides to reach an agreement

f. union made up of workers in an industry, regardless of job orskill level

g. federal law that sets the lowest legal hourly wage thatemployers can pay

h. company in which employees are not required to join theunion but most pay union dues

i. person whose job requires some training

j. company in which only union members may be hired

312B

■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

Resource ManagerCHAPTER 12Application and Enrichment

Enrichment Activity 12

Teaching Transparency

Application and Enrichment

Review and Reinforcement

C HAPTER 12 THE AMERICAN LABOR FORCEDirections: Use the following clues to fill in the vocabulary terms on the grid below.

ACROSS

2. Made up of all the workers in an industry, regard-less of job or level of skill; an example is theAFL-CIO (two words).

6. People who are employed or actively seeking work(three words)

7. Refusal to purchase goods or services for labor reasons

9. Office workers, salespeople, and professionals (twowords)

10. Workers in jobs that require no special training

DOWN

1. Cooks, piano tuners, health-care aides, and barbers(two words)

3. Jobs that require some training in modern technology

4. Lowest legal hourly wage for certain types of workers (two words)

5. An association of workers organized to improvewages and working conditions for its members(two words)

8. Collar category that includes craftworkers, workersin manufacturing, and nonfarm laborers

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Economic VocabularyActivity 12

312A

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U SING LIBRARY RESOURCESLibraries contain many resources. These resources include traditional resources, such as ency-clopedias, atlases, almanacs, and periodicals, as well as online resources, such as computerdatabases and access to the World Wide Web. Knowing which resources to use will improvethe quality and efficiency of your research.

Directions: You are writing a term paper on trade between the United States and Japan. To make thereport interesting, you want to include many real-world examples. You also want to make sure that yourreport covers very recent developments. Choose sources from among the following:

Business Week, Fortune, Forbes––business magazines published weeklyStatistical Abstract of the United States––published yearlyWorld Almanac, Information Please Almanac––published yearlyWorld Development Report––published yearlyThe World Wide Web

1. What source would you use to find out the value of Japan’s exports to the United States between 1985 and 1995?

2. What source would you use to find out how economic conditions in Japan differ from economic conditions inthe United States?

3. Where would you find examples of U.S. businesses that have been successful in Japan?

4. Where would you find out what actions Japan’s Ministry of International Trade and Industry (MITI) has taken inthe past month?

Name Date Class

27

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M AKING INFERENCES ABOUT SAMUEL GOMPERSWhen you make inferences, you use stated facts and information, as well as what you alreadyknow, to form ideas.

Directions: Read the following information about the life of Samuel Gompers, a leader in the labor move-ment. Then answer the questions that follow.

Samuel Gompers was born in London, England, in 1850. He went to school for only four years. When he left school,he received training as a cigar maker in London, and he began working at this trade as a young boy. Gompers and hisfamily came to the United States in 1863. Eventually he, like many other immigrants, became active in labor unions.

In 1886 Gompers’s views were more conservative than those of some other early labor leaders, who believedthat strikes were acceptable. Gompers thought that laborers could achieve their goals by bargaining peacefully with business leaders and by voting for political candidates whose views were favorable to workers.

1. Was Gompers a skilled or an unskilled laborer? What information enables you to make this inference?

2. Do you infer that Gompers’s parents were wealthy or not wealthy? What evidence helps you make this inference?

3. Why might immigrants be especially attracted to labor unions?

4. Suppose the workers at a factory have not received a pay raise in five years. In Gompers’s view, which of the following actions would probably be the best way for the workers to try to obtain a raise quickly? Explain yourchoice.

a. striking to compel management to grant a raiseb. meeting with the factory owner to try to work things outc. voting for a presidential candidate who wants to help workers

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Critical Thinking Activity 13 Reteaching Activity 12

Reinforcing Economic Skills 27

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HY SALARIES DIFFERSeveral factors affect salaries. They differ from industry to industry, region to region, but most significantly, from one level of education and training to the next. According to the U.S. Department of Labor, the average salaries of college-educated workers have grownalmost 25% in the last 20 years while the median wage for male workers with only highschool diplomas actually dropped 20%, and wages for men without a high school diplomadropped by 33%.

The Bureau of Labor Statistics calls the following chart Education Pays:

Unemployment and Earnings by Educational Attainment (for full time workers age 25 and over)

Directions: Use the data above to answer the questions below.

1. Which level of education experienced the highest rates of unemployment?

The second highest?

2. What is the median weekly earnings of a high-school graduate? Of someone with

a bachelor’s degree?

3. Why did the Bureau of Labor Statistics report the above data using the age of 25 as its lower limit?

4. Suppose everyone in the U.S. were to earn at least a master’s degree. How would it change the data in the tableabove? What other effects might it have?

5. What do you give up by going to college after high school? What do you gain?

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13W

Unemployment Annual MedianRate Earnings Education Attained

1.4 72,700 Professional degree

1.3 62,400 Doctorate

1.6 50,000 Master’s Degree

1.9 40,100 Bachelor’s Degree

2.5 31,700 Associate Degree

3.2 30,400 Some college, no degree

4.1 26,000 High school graduate

7.1 19,700 Less than a high-school diploma

Wages 10% raise or $13.20 per hour 3% raise or $12.36 per hour

Hours 36-hour week 40-hour week

Overtime Double time after 36 hours Time and a half after 40 hours;double time on weekends

Breaks 15 minutes, 15 minutesmorning and afternoon in the afternoon

Paid Holidays 10 8

Health Insurance All paid by company First $250 paid by employee

Dental Insurance All paid by company First $500 paid by employee

Uniform Allowance $200 $50

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U SING ARBITRATIONCollective bargaining between management and unions is a process of compromise. However,sometimes management and workers are still far apart when a strike deadline is approaching.If that happens, both parties may agree to submit their cases to an impartial arbitrator. Thearbitrator considers the merits of each side’s arguments as well as the settlements made byother companies in the industry. The arbitrator then dictates an agreement that both sidesmust accept.

In a dispute between Big Board, Inc., the state’s largest producer of finished lumber, and its 200 workers represented by Local 14, the arbitrator received the following information:

The average industry wage is $11.00 per hour, but Big Board now pays$12.00, although employees have not had a raise in two years. Other com-panies (and Big Board) have a 40-hour workweek, and most of them (butnot Big Board) pay double time for work on the weekends. Big Board hasonly one 15-minute break but longer lunchtimes than its competitors. Mostof the industry provides 7 to 8 paid holidays, complete health insurance,no dental insurance, and a $100 uniform allowance. In general the industryis increasingly profitable. However, Big Board has been losing some of itscustomers to younger competitors.

Directions: Assume that you are the arbitrator in this dispute. Which demands and offers below seem reasonable? Which seem unreasonable? Complete the chart with a compromise agreement.

Name Date Class

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Union Demands Management Offers Agreement

Economic Concepts 16

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1970 1980 1990 2000*

United States Unemployment

Mill

ions

Persons in Civilian Labor Force Unemployed Persons *estimated

82.77

4.097.64 7.04 7.00

106.94

125.84

142.00

U NEMPLOYMENTThe bar graph shows the number of people in the civilian labor force and the number of unemployed people inthe United States.

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Economic Concepts Transparency 16

Consumer ApplicationsActivity 13

Free Enterprise Activity 13

Gross Pay FICA Federal State Retirement Net Pay

A NALYZING A PAYCHECK

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Each pay period employers withhold a portion of the federal income tax and often part of thestate income tax so that employees do not have to make one large payment at the end of theyear. The paycheck stub provides information about amounts deducted from a person’s paysuch as social security (FICA taxes) and retirement funds.

A paycheck stub might look like this:

Directions: Study the stub carefully, then do some math to answer these questions.

How many paychecks has this person received to date? (1)What amount is actually printed on the paycheck? (2)How much has this person had withheld for federal income tax in this pay period?

(3) For state tax? (4)What percentage of the person’s gross pay is withheld for federal taxes each payment period?

(5) For state tax? (6)What percentage of gross pay is contributed to FICA? (7) To the retirement fund?

(8)Fill in this paycheck stub for someone who has worked 2 weeks for a total of 80 hours at $8.14 an hour. The

person’s pay is based on 50 weeks per year. The year’s total federal income tax withheld for this person will be

$2,341, and the total state tax withheld will be $628.

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13

Federal taxes withheld comes to a sizable amount. Where does this money go? One way of looking at how the

federal government spends your tax dollars is to apply the percentages spent by the government in different areas to

the amount you pay in federal taxes. For instance, in a recent year the government spent 2.4 percent of its budget on

veterans’ programs. It is possible to think that 2.4 percent of your total taxes went to veterans’ programs. If you paid

$1,120 in taxes, then, $26.88 went to veterans’ programs. To arrive at the dollar amount you multiply your total taxes

by the percentage: $1,120 � .024 � $26.88.

Calculate how many of your tax dollars went to each of the following areas:

(10) 7.1% health (11) 19.6% national defense

(12) 3.5% education (13) 13.7% interest payment on the national debt

CPP (current pay period) 473.30 29.34 54.00 11.93 14.19 356.98

YTD (year to date) 1,419.90 88.02 162.00 35.79 150.39

Gross Pay FICA Federal State Retirement Net Pay

CPP (current pay period) (9) 40.37 0

EXAMINING THE CARTOON

Multiple Choice

1. What American tradition is the basis for the cartoon?

a. striving to achieve a white-collar job b. framing the first dollar one ever earnsc. taking pride in one’s work d. doing the best job one can

2. What is the relationship between the jobs of the two people?

a. They are in equivalent jobs. b. The woman has a higher level job than the man.c. The man has a higher level job than the woman. d. There is no relationship between their jobs.

3. Which economic concept is illustrated by the cartoon?

a. equilibrium b. comparable worthc. circular flow of income d. comparative advantage

Critical Thinking

4. Analyzing the Cartoon What two points about the job market is the cartoonist making?

5. Expressing Your Opinion Do you think this cartoon has the power to change a reader’s mind? Explain.

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QUESTION OF ECONOMIC EQUALITYAchieving equal wages has been a long-term battle for women. Today, on average, womendoing the same job as men still make less money. Moreover, a disproportionate number of high-level jobs still go to men. This situation makes an easy target for a savvy editorial cartoonist.

Directions: Study the cartoon below. Then answer the questions that follow.

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Doug Marlette

The demand for programming know-how is so greatthat in many companies geeks are becoming an exaltedelite. Indianapolis Life Insurance Co., for example, desper-ately needs to retain its staff of 70 computer engineersand systems analysts to complete its Year 2000 conversionprojects on time. High-paying competitors lured away 20percent of the department last year, so this January thecompany announced $1.25 million worth of bonuses ofup to 20 percent of base pay and other rewardsredeemable in 2000—choices include a trip to DisneyWorld, a new computer and a year’s supply of pizza . . .

Techies can crow the loudest, but plenty of other fieldsface talent crunches and steeply rising salaries. Marketing,retailing, manufacturing, and lawyering are all on therebound and in dire need of mid-level practitioners. . . .

First-timers in the job market have never had it sogood. William Banis, director of career services atNorthwestern University, says starting salaries for the classof 1998 averaged about $40,000. . . . At Vault Reports, a

New York company that sells research on companies tojob applicants, Mark Oldman has seen graduating seniorsamong his clients getting the “Taj Mahal treatment.” Hetells of 22-year-olds being lavished with four-star dinnersand late-night trips to the happening dance clubs. . . .

The job-market crunch has put a premium on innova-tion when it comes to finding and keeping employees.Bruce Skillings of Bernard Hodes, a firm that specializes inemployment advertising, encouraged his client EFI, amaker of color-printing software, to do more than theusual campus based recruiting. So this spring EFI co-sponsored Sky Concert, a popular annual San Franciscoevent. As 250,000 fans gathered . . . company staffpassed out 20,000 containers of bubble soap (and blow-ers) with labels reading, “Welcome to the revolution. www.efijobs.com.”

McGinn, Daniel, Patricia King, Pamela Klein, Michael Hirsh, and KeraKetchum. “Year of the Employee.” Newsweek, July 20, 1998.

26 Primary and Secondary Source Readings

ANALYZING THE READING

1. What did the Chicago-based consulting group Whitman-Hart offer software specialist Glen Kelley to keep him onas an employee?

2. What are the basic causes of the limited supply of good workers?

3. According to the article, which professionals are in greatest demand? What other fields are experiencing a shortage of workers?

4. What other perks and benefits besides salary are companies offering to lure the best workers?

5. What factors besides salary should a person consider before accepting a job? Explain your answer.

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Cooperative Learning Simulations and Problems 13

Primary and Secondary Source Reading 13

Math Practice for Economics Activity 13

Economic Cartoons Activity 13

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E MPLOYMENT

GROUP PROJECT

The civilian labor force in America consists of all individuals from 16 to 65 years of age whoare working or actively seeking employment. A large number of these people have used theclassified ads section of the newspaper, completed job applications, been interviewed, andundergone hiring procedures. You will work with members of your group to become familiarwith the employment process by following the steps diagrammed below.

Steps in the Employment Process

1. Group Work Stage 1: Organize into groups of fivestudents. In your group, elect one member to be alayout editor in charge of creating your classifiedads page based on information and suggestionssupplied by group members.

2. Individual Work Stage 2: Write a classified adannouncing an opening for a job of your choice.Refer to the classified ad section of a newspaper forexamples of job descriptions, types of informationto include, relevant skills, and format styles. Youmay also refer to the Occupational OutlookHandbook in your local library. Then compile a listof five questions that you might ask a job candidateapplying for the position.

3. Group Work Stage 3: Individuals submit their adsto the group. Classify the jobs as unskilled, semi-skilled, skilled, or professional. Give the ads to the layout editor, who arranges them in a page of classified ads. While the layout editor is busy, worktogether to devise a general job application formthat inquires about an applicant’s education,experience, and skills.

4. Group Sharing Stage 4: Exchange your classifiedads page with another group. Each group memberapplies for one job of interest from the page bycompleting one of the group’s application forms.

5. Group Analysis Stage 5: Group members revieweach application, then interview each job applicant.The individual who wrote each ad asks the five questions from the prepared list. Group members canask additional questions. Complete the employmentprocess by discussing the following questions: Howmuch emphasis should an employer place on theapplication and the interview? What criteria doemployers use to decide which applicant to hire?What factors affect the wages paid for various jobs?

Group Process QuestionsWere the goals of this assignment clear?

Did members work well together?

Did members respect each other’s point of view?

What is the most important thing you learned whileparticipating in group work?

COOPERATIVE GROUP PROCESS

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1. Write ad 2. Prepare interview questions 3. Create application form

4. Run classified ad 5. Review applications

6. Conduct interviews 7. Hire and negotiate wages

■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

Resource ManagerCHAPTER 12

our years ago, Glen Kelley was a software specialist ata Midwestern shipping company when Whittman-Hart, afast-growing Chicago consulting group, offered him a job.Kelley, now 31, was willing to jump, but with one toughcondition: he. . . needed the company to pay for expen-sive infertility treatments. The firm answered with anextraordinary insurance package that covered everypenny. . . and offered him a 12 percent raise to boot. . . .The treatments, which eventually cost $30,000, failed.Then Kelley and his wife, Carrie, wanted to adopt. Stockoptions from Whittman-Hart paid for the entire $20,000bill. . . .

Such tales abound in today’s drum-tight job market.Stunning pay increases and gold-plated stock options,once the sort of bait dangled mostly in front of prospec-tive chief executives, are now used to lure everyone fromsecretaries on up. Many companies have started to playthe game of “top this” with nonmonetary perks, too.Neversoft Entertainment, a Hollywood computer gamesdesigner, not only allows staffers to bring their dogs towork, but also supplies the Milk-Bones. . . . Atlanta-basedRevenue Systems gives every employee access to its fleetof BMWs.

It’s the revenge of the downsized: near-record-lowunemployment and a long economic boom have creatednightmares for employers and fat opportunities for street-wise employees. Scott Adams, creator of the comic strip“Dilbert” . . . puts it this way: “There has never been abetter time in history to heap abuse upon your boss.”

Though the ‘90s started as the decade of job insecu-rity, a funny thing happened after corporate America triedto slash-and-burn its way to prosperity: good workerswere suddenly in short supply. The economy’s steadygrowth has been the biggest cause of this talent dearth,but other broad trends have also done their part: a shrink-ing labor supply as fewer young people entered thework force, and rising demand thanks to the computer

revolution. . . . It’s not just the educated and computer-lit-erate who are reaping the benefits. Workers at all levelsappear to be getting a boost. The White Castle burgerchain is so desperate for counter jockeys in all its centralIndiana outlets that it is handing out $500 in cash to any-one who stays on the job at least six months. . . .

With some 478,000 information-

technology jobs currently unfilled,

no group is more in demand than

computer whizzes.

As Dilbert’s creator knows, what’s changed most is thepsychology of the workplace. . . . As part of its merger withanother company, New Jersey-based Beneficial FinancialCorp. will lay off hundreds of employees at its headquar-ters this summer. According to a human-resourcesmanager there, many recipients of these pink slips are“thrilled to death.” While the older staffers are worried,she explains, younger, computer-literate ones expect tofind jobs paying 20 percent to 30 percent more within amonth. In the meantime, they’re getting hefty severancepackages. . . .

With some 478,000 information-technology jobs cur-rently unfilled, no group is more in demand thancomputer whizzes. Companies are willing to do almostanything to attract these precious few. In Silicon Valley,stealing tech staff away from rivals is called “nerdrustling,” and it’s enough to give any programmer majorattitude. Thomas Schmidt is a 34-year-old computer con-sultant who specializes in the hot field of systemsintegration. In the past two years, he has changed jobstwice and doubled his salary in the process. . . .

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Primary and Secondary Source Readings 25

Name Date Class

Y EAR OF THE EMPLOYEEMany factors determine the wages a worker can command in the marketplace. Among these factors are the level of skills and abilities a particular position requires and the nature of the work itself. In a booming economy where jobs are plentiful, wages will increase in many industries to attract competent employees. The articlebelow analyzes the financial benefits afforded workers in a healthy economy. As you read, consider your own value in the labor force today. Then answer the questions that follow.

13

F

http://ett.glencoe.com

Block Schedule

Roger A. MillerNew Castle High SchoolNew Castle, Indiana

Labor and ManagementHave students bring in employee manuals from their

part-time jobs or from a parent or other relative’s work-places. Study the benefits and procedures listed in themanuals. Have students compare the benefits and discusswhy there are differences among them (safety issues,seniority, and so on).

Then have students organize into two groups to takepart in a simulated labor dispute. Half the class will belabor; the other half, management. Labor will select anissue or benefit (one missing from the employee manuals)and negotiate for the benefit through collective bargainingwith management. Both sides should try to come up withthe best solution for the dispute.

ACTIVITYFrom the Classroom ofACTIVITYFrom the Classroom of

Activities that are particularly suited to use within the blockscheduling framework are identified throughout this chapterby the following designation: BLOCK SCHEDULING

Block Schedule

Use Glencoe’s Presentation Plus!,a Microsoft PowerPoint® application, to teach The American Labor Force.With this multimedia teacher tool, you

can customize ready-made presentations. At your fingertipsare interactive transparencies, on-screen lecture notes,audiovisual presentations, and links to the Internet and toother Glencoe multimedia.

Interactive Lesson PlannerPlanning has never been easier! Organize your week, month, semester, or year with all the lesson helps you need to make teaching

creative, timely, and relevant—the way it is meant to be. TheInteractive Lesson Planner opens Glencoe’s Chapter 12resources, helps you build your schedule, and tracks yourprogress.

■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■


Teaching strategies have been coded for varying learning styles and abilities.L1 BASIC activities for all studentsL2 AVERAGE activities for average to above-average

studentsL3 CHALLENGING activities for above-average students

ENGLISH LANGUAGE LEARNER activitiesELL

Key to Ability Levels

Voluntary Standards Emphasized in Chapter 12Content Standard 10 Students will understand thatinstitutions evolve in market economies to help individualsand groups accomplish their goals.

Content Standard 13 Students will understand thatincome for most people is determined by the market valueof the productive resources they sell. What workers earndepends, primarily, on the market value of what they pro-duce and how productive they are.

Resources Available from NCEE• Personal Decision Making: Focus on Economics• Personal Finance Economics: Wallet Wisdom• Choices & Changes: Choice Making, Productivity, and

Planning

To order these materials, or to contact your StateCouncil on Economic Education about workshops andprograms, call 1-800-338-1192 or visit the NCEE Web siteat http://www.nationalcouncil.org

Easy Planning and Preparation!

312D

■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■


312C

Blackline Master

Transparency

Software

CD-ROMVideodisc

Audiocassette

Videocassette

Reading Objectives Reproducible Resources Technology/Multimedia Resources

Section 1Americans at Work• How are workers categorized

according to skill level and training?• How do skill, type of job, and location

affect supply and demand in the labormarket?

Section 2Organized Labor• What obstacles did labor unions face

when they began to organize in the1800s?

• How do closed shops, union shops,and agency shops differ?

Section 3Collective Bargaining• What are the major issues over which

union contracts are negotiated?• What workers’ actions and

management responses mayaccompany a strike?

• How has collective bargaining in theUnited States changed in recentyears?

Reproducible Lesson Plan 12-1Daily Lecture Notes 12-1Guided Reading Activity 12-1Reading Essentials and Study Guide 12-1Daily Focus Activity 38Section Quiz 12-1*

Reproducible Lesson Plan 12-2Daily Lecture Notes 12-2Guided Reading Activity 12-2Reading Essentials and Study Guide 12-2Daily Focus Activity 39Section Quiz 12-2*

Reproducible Lesson Plan 12-3Daily Lecture Notes 12-3Guided Reading Activity 12-3Reading Essentials and Study Guide 12-3Daily Focus Activity 40Section Quiz 12-3*Reinforcing Economic Skills 27

Daily Focus Transparency 38

Economic Concepts Transparency 16Vocabulary PuzzleMakerInteractive Tutor Self-Assessment SoftwareMindJogger Videoquiz

NBR's Economics & You*Presentation Plus!


Daily Focus Transparency 39Vocabulary PuzzleMakerInteractive Tutor Self-Assessment SoftwareMindJogger Videoquiz



Daily Focus Transparency 40Vocabulary PuzzleMakerInteractive Tutor Self-Assessment SoftwareMindJogger Videoquiz



*Also available in Spanish

Section Resources

http://www.nationalcouncil.org

313

313The Amer ican Labor Force

Terms to Know• civilian labor force• blue-collar workers• white-collar workers• service workers• unskilled workers• semiskilled workers• skilled workers• professionals• minimum wage law

Reading Objectives1. How are workers catego-

rized according to skill leveland training?

2. How do skill, type of job,and location affect supplyand demand in the labormarket?

READER’S GUIDE

Everyone—from a factory worker to the president of a corpo-ration—belongs to the productive resource known as labor.As you read this section, you’ll learn how workers are cate-

gorized, how wages are determined, and why employers need topay more to get (and keep) good workers.

The Civilian Labor ForceWhen discussing labor, economists use the term labor force

in a specific way. The civilian labor force is the total number ofpeople 16 years old or older who are either employed or actively

1

civilian labor force: total num-ber of people 16 years old orolder who are either employedor actively seeking work

THE COLUMBUS DISPATCH, MARCH 17, 1999

Baseball player, president, and cowboy—great jobs,right? Wrong. Try Web site manager, computer systemsanalyst, and software engineer.

Low stress, short workweeks,and room for advancement

put those professionsnear the top of the list in Jobs RatedAlmanac, a book rank-ing 250 of the best and worst jobs in the country.

Nine of the top 10 jobs were in computer or math-related fields. Physical labor fared worst in the rankings, with oil field “roustabouts,”

lumberjacks, and fishermen taking the final threespots on the list.

CHAPTER 12SECTION 1, Pages 313–319


Reproducible MastersReproducible Lesson Plan 12–1Reading Essentials and Study Guide 12–1Guided Reading Activity 12–1Section Quiz 12–1Daily Focus Activity 38Daily Lecture Notes 12–1

MultimediaDaily Focus Transparency 38

Economic Concepts Transparency 16Vocabulary PuzzleMaker

Interactive Tutor Self-AssessmentSoftware

ExamView® Pro TestmakerMindJogger Videoquiz

NBR’s Economics & You

SECTION 1 RESOURCE MANAGER

OverviewSection 1 describes the different

categories of jobs in the Americaneconomy and explains how supplyand demand determine the wagesfor various jobs.

Answers to the Reading Objectivesquestions are on page 319.

Preteaching VocabularyHave students find the defini-

tions of the Terms to Know in theGlossary. Then have students usethese terms in a paragraph thatdescribes the American labor force.

Vocabulary PuzzleMaker

READER’S GUIDE

Why It’s ImportantDo you have a part-time job? Who determines how much you get paid? How can you earn more? This chapter will explain the major categories of the labor force and the factors that affect wages.

To learn moreabout workersin the UnitedStates, view

the Economics & You Chapter14 video lesson: TheAmerican Labor Force

Chapter Overview Visit the Economics Today and Tomorrow Web site at ett.glencoe.com and click on Chapter 12—Chapter Overviewsto preview chapter information.

IntroducingCHAPTER12

312

Chapter OverviewChapter 12 explains the compo-

sition of the American labor force,how supply and demand affectwages, the development of orga-nized labor, and the procedures andpurposes of collective bargaining.

CHAPTER LAUNCH ACTIVITY

IntroducingCHAPTER12

Use MindJoggerVideoquiz VHS to previewChapter 12 content.

Introduce students to chaptercontent and key terms by havingthem access Chapter 12—ChapterOverviews at ett.glencoe.com

Encourage students to imagine that they represent workers at a fast-food restaurantor a convenience store and that they are about to negotiate pay and working condi-tions. Have them consider what they might ask for. Then have them consider what themanager of the restaurant or convenience store might be willing to give. Ask studentshow they and the manager might be able to bring what is being asked and what isbeing offered closer together. Guide students toward the idea of compromise. Concludeby pointing out that in this chapter students will learn how compromise plays a majorrole in the settlement of labor-management disputes.

ECONOMICS & YOU

The American Labor Force

!8LV2" Chapter 14 Disc 1, Side 1

ASK: Why did unions becomepopular in the 19th century?They fought for safer workingconditions, shorter working hours,and such benefits as paid healthinsurance and vacations.

Also available in VHS.

Project Daily FocusTransparency 38 and have students answer the questions.

This activity is also availableas a blackline master.

Daily Focus Transparencies

D ETERMINATION OF WAGES

1. Do you agree that economists aren’t as important as garbagemen? Why?

2. Why aren’t garbagemen paid as much as economists? What factors determine wage rates?

3838

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BELLRINGERMotivational Activity



315


blue-collar workers: category ofworkers employed in crafts, man-ufacturing, and nonfarm labor

white-collar workers: categoryof workers employed in offices,sales, or professional positions

service workers: people whoprovide services directly to individuals

entered the workforce because of higher wages, often becameblue-collar workers—craft workers, workers in manufacturing,and nonfarm laborers.

The largest sector of the labor force is white-collar workers.Office workers, salespeople, and highly trained individuals such asphysicians and engineers are classified as white-collar workers. Thissector experienced steady growth throughout the twentieth century.

In recent years, a shift away from farm work and blue-collarjobs to the service sector of the economy has occurred. Serviceworkers are those who provide services directly to individuals.Cooks, piano tuners, health-care aides, and barbers are all serviceworkers. See Figure 12.2.

A White-collar workers include office workers,salespeople, and highly trained individualssuch as engineers.

C Service workers provideservices—haircuts, food service, child care, and soon—directly to individuals.

B Blue-collar workers include craftworkers, workers in manufacturing,and nonfarm laborers.

Worker Categories by Type of Job Economistssometimes classify workers by their type of occupation,regardless of the skills necessary to perform the job.

12.212.2



Project Economic ConceptsTransparency 16 and have studentsdiscuss the accompanying questions.



314 CHAPTER 12

seeking work. Individuals not able to work, such as disabled peo-ple or those in prisons or mental institutions, are not included inthe civilian labor force. People in the armed forces or those notlooking for a paying job, such as full-time students and home-makers, are excluded as well. Figure 12.1 shows the civilianlabor force in comparison to the total working-age population.

Categories of WorkersWorkers in the United States are categorized in several ways.

One way is to group them according to the type of work they per-form. Another way is by the level of training or education theirjobs require.

Blue-Collar, White-Collar, and Service Workers Duringthe late 1800s and early 1900s, many farmworkers moved tocities. This migration occurred in part because the increased useof farm machinery required fewer agricultural workers. Higherwages paid to workers in the growing industries of urban areasalso lured farmworkers there. Displaced farmers, and others who

Total Workforce16 Years and OlderThe number of peopleage 16 and older who arenot in the labor force isnot the same number asthe nation’s unemploy-ment rate. Why?

3.1%6,432,000Disabled

Civilian Labor Force138,816,00066.5%

Not in the Labor Force68,996,00033.0%

Armed Forces1,056,0000.5%

9.9%20,798,000

Keeping House

10.9%22,743,000

Retired

Employment Status of United States Population

Source: Standard & Poor’s

63.7%133,033,000Employed

4.4%9,142,000In School

4.7%9,881,000

Other 0.5% 1,056,000

Armed Forces

2.8%5,783,000

Unemployed

FIGURE 12.1FIGURE 12.1

For an online update of this graph, visit ett.glencoe.com and click on Textbook Updates—Chapter 12.

314

Answer: The unemployment rate isbased on the civilian labor force.Those not able to work—such as dis-abled people and those in prison ormental institutions—people in thearmed services, and those not look-ing for a paying job—such as full-time students and homemakers—arenot counted as part of the laborforce.

L ECTURE LAUNCHERIn 1950 the percentage on Nonfarm jobs in service-producing businesses was 59%, in 1970 it was 67%. By the year 2005 it is projected that this figure will rise to 82%. Who comprisesthe civilian labor force? How is it changing? What are the various skill levels?

I. The Civilian Labor Force

A. The civilian labor force is the total number of people 16 years or older who areemployed or seeking work.

B. People not included in the civilian labor force: mental or physically disabled people,prisoners, people in the armed forces, and those not looking for a paying job.

• Discussion Question

Why do you think certain working people are not included in the civilian labor force?(By definition, the term civilian means a non-military or non-government officer. This wouldautomatically exclude military people and federal and state officers. Others, such as full-timestudents and homemakers, may be working, but do not bring in an income, and thereforeare not considered part of the civilian labor force.)

II. Categories of Workers

A A di h f k h d bl ll ( f k f d

12-1

PAGES 313–314

PAGES 314–316

Daily Lecture Notes 12–1

Limited Math Skills When reviewing statistics on wages, students with limited math skillsmay confuse the terms mean and median. Help these students by offering the following clues:1. The median is the middle (both words have a d sound, which can be used as a memory

aid). Only by ranking the numbers from largest to smallest can you find the middle. Ifthere are two “middle numbers,” add them and then divide by two to find the true middlenumber, or median.

2. The mean is the average—simply add all the numbers and divide by the number of entries.

Refer to Inclusion for the Social Studies Classroom Strategies and Activities

Meeting Special Needs

Name Date Class

For use with the textbook pages 313–319

A MERICANS AT WORK

FILLING IN THE BLANKS

Directions: Use your textbook to fill in the blanks using the words in the box. Some words may be usedmore than once.

civilian labor force blue-collar workers professionalsservice workers white-collar workers locationunskilled workers semiskilled workers skilled workersminimum wage law labor supply and demandlabor market skill market failure

Introduction/The Civilian Labor ForceEveryone belongs to the productive resource known as 1 __________________________. The

2 __________________________ is the total number of people 16 years old or older who are either

employed or actively seeking work.

Categories of Workers3 __________________________ are employed in craft, manufacturing, and nonfarm labor. Office workers, salespeople,

and doctors are examples of the largest sector of the labor force— 4 __________________________. While

5 __________________________ are those who provide services directly to individuals. Jobs are also categorized by

skill level. 6 __________________________ are workers with no specialized training. Those whose jobs require some

training often using modern technology are known as 7 Those with the most educa-

12-1

Guided Reading Activity 12–1

ECONOMICS & YOU



ASK: What are the four majorcategories of workers in theAmerican labor force? blue-collar workers, white-collar work-ers, service workers, and farm-workers


Organize students into several groups, and have groups create collages that illustratethe United States labor force. Have group members collect magazine, newspaper, andother media pictures of people at work. Inform groups that jobs should range in fields frommanual labor to the most recent high-tech developments. Have groups use these picturesto create their collages. Point out that collages should show diversity in terms of range ofoccupations, types of people working, and types of location. Have groups display their fin-ished collages around the classroom. BLOCK SCHEDULINGELL

Cooperative Learning

Guided PracticeL1 Understanding Ideas Write thefour skill categories of labor—unskilled, semiskilled, skilled, andprofessional—along the top of theboard. Call on volunteers to identifyjobs that fall in each category. Listresponses under the appropriate category heading. Then ask studentsto write a classified advertisement for one job from each category. (Toassist students, you might providethem with copies of the classifiedsections of various newspapers.)Have students compare and discusstheir advertisements.

317

product that the worker produces. The worker’s productivity willbe the major factor in determining his or her success. An employeewhose value is easily and generally recognized cannot be under-paid for long by a firm, because another firm will soon enticethat worker away with a higher salary.

The type of job also affects the amount an employer is willingto pay and a potential employee is willing to accept. Jobs that areunpleasant or dangerous, such as coal mining, often pay higherwages compared to other jobs requiring equal levels of skill.Again, the demand for workers is high, but the supply of laborerswilling to do the work may be low.

In contrast, some jobs are enjoyable or prestigious or desirableenough that people are willing to take them even at low wages.Many people take lower-paying jobs in industries such as film-making and publishing for these reasons. Inthese cases, the demand for workers is low,whereas the supply of individuals waiting forprestigious positions is high.

The location of both jobs and workersis the third factor in determining wages. If workers are relatively scarce in an area,companies may have to pay high wages toattract workers to move there. Alaska, forexample, has the highest wages per personin the country. In contrast, a company in ahighly populated area often can hire people

Student Web Activity Visit the Economics Today and Tomorrow Web site at ett.glencoe.comand click on Chapter 12—Student WebActivities to see how the Internet can help youfind a job.

If you want to succeed in business, studythe masters: Warren Buffett. Lee Iacocca.

Bill Gates. And William Shakespeare.Shakespeare’s plays deal with people in

positions of power and responsibility. Aworkshop at Shakespeare’s Globe Theaterteaches business leaders to read Shake-speare’s works for wisdom that can beapplied in the work world.

To weather acts of betrayal, you mightturn to Julius Caesar. Newly promoted lead-ers can find parallels with Shakespeare’sHenry V, who struggles to gain respect inhis new role as king. Consider Hamlet whenyou’re facing indecision and action. AndMacbeth teaches how to avoid becomingobsessed with power for its own sake. ■

—The Columbus Dispatch, May 27, 1999

Shakespeare as Business Guru?Shakespeare as Business Guru?

Economic Connection to... LiteratureEconomic Connection to...





CHAPTER 12SECTION 1, Pages 313–319 Jobs Categorized by Skill Level Another way to catego-

rize workers is by the skills required to perform their occupa-tion. Unskilled workers are those whose jobs require nospecialized training. Jobs such as waiting on tables and custo-dial work are considered unskilled, although obviously thesetypes of work require skills such as patience and the ability topace oneself or to work according to a schedule. Such jobs mayalso demand the ability to work well with people.

Semiskilled workers are those whose jobs require sometraining, often using modern technology. The job of nurse’saide, for example, is considered a semiskilled occupation.

Someone who has learned a trade or craft, either through avocational school or as an apprentice to an experienced worker,is considered a skilled worker. Police officers and masons holdskilled occupations.

Professionals are those with college degrees and usuallyadditional education or training. Also classified as white-collarworkers, people who hold professional jobs include teachers,architects, and accountants. As shown in Figure 12.3, workersmay move from one skill level to another as they gain trainingand experience.

Supply and Demandin the Labor Market

The labor market, like other markets, is affected by supplyand demand. Suppliers are the workers who offer their services,while the demand comes from employers who require workers.

Supply and Demand Factors That Affect Wages Threemajor factors affect how supply and demand determine prices,or in this case wages, in the labor market. These factors includeskill, type of job, and location.

The first factor, skill, is the ability a person brings to a job. Itmay come from talent, initiative, education and/or training, orexperience. Because the demand for highly talented individuals is usually high, whereas the supply of such employees is oftenscarce, a shortage occurs. As you remember from Chapter 7, ashortage usually results in high prices—or high wages. A highlyeducated brain surgeon and a talented major league home-run hit-ter, for example, both are paid large sums of money because theirskills are in high demand relative to supply.

A worker’s initiative also plays a large role in determiningwages. Overall, a worker’s wages will reflect the value of the

unskilled workers: peoplewhose jobs require no specializedtraining

semiskilled workers: peoplewhose jobs require some training,often using modern technology

skilled workers: people whohave learned a trade or crafteither through a vocational schoolor as an apprentice to an experi-enced worker

professionals: highly educatedindividuals with college degreesand usually additional educationor training

Worker Categories by SkillThis woman moved from a semiskilledposition—lumberjack—to a skilled posi-tion—manager of the lumberyard.

12.312.3

316

L2 Classifying Information Call onstudents to identify the jobs done bypeople they know or jobs they haveread about in newspapers or seen ontelevision. List their responses on theboard. Then ask students to con-struct a three-column chart in theirnotebooks, using “Jobs,” “Labor Cate-gory,” and “Factors Affecting Supplyand Demand” as column headings.Direct students to select 10 jobs fromthe list on the board and enter themin the first column of the chart. Inthe second column, have them notewhether the jobs are unskilled, semi-skilled, skilled, or professional. Askstudents to enter in the third columnwhat factors they think might affecthow supply and demand determinewages for these jobs. Have studentsshare and compare their finishedcharts.

After students have studiedFigure 12.3, have them suggesthow other categories of labormight be illustrated. Possibleanswers: unskilled—restaurantworker cleaning a table, landscap-ing worker raking leaves; profes-sional—doctor examining patient,architect viewing blueprints.

Economic Connectionto... LiteratureEconomic Connectionto...

Shakespeare and BusinessWhy are Shakespeare’s playssuch a source of ideas for busi-ness leaders? According toRichard Olivier, who runs theGlobe Theater’s workshops, it isbecause Shakespeare “deals withpeople in a position of power.There are always kings, dukes,princes, who are put in some kindof dilemma about how to deal withauthority, whether it is beingthreatened by someone or wherepower has to be negotiated.”

See the Web Activity LessonPlan at ett.glencoe.com for anintroduction, lesson description,and answers to the Student WebActivity for this chapter.

Labor Categories The labels unskilled, semiskilled, skilled, and professional are helpfulin developing a broad picture of the different segments of the labor force. However, someindividuals may not fall into a single category. A college student, for example, may work atan unskilled job as server at a fast-food restaurant while he or she attends college. Inaddition, the definition of the term technician—traditionally a skilled position—has begun tochange. Some technicians today require considerable training, including a college degree,to prepare them for very difficult and demanding jobs. Moreover, the line between sometechnicians and scientists—who are considered professionals—is very thin.

Extending the ContentPoint out that wages often include fringe benefits, such as paid vacation time, health

insurance, and pension contributions. Organize students into several groups, and haveeach group select a local company. Have groups visit or write to the personnel depart-ments of these companies to discover what fringe benefits the companies offer. Havegroups share their findings with the rest of the class.

Free Enterprise Activity

IndependentPracticeL3 Debate Organize the class intotwo groups to debate the following:Should professional athletes, rocksingers, and movie stars commandhigh salaries for their labors? Sug-gest that students focus on economicarguments in the debate.BLOCK SCHEDULING


319319

jobs is imperfect. Workers cannot know exactly what all otheremployers will pay for their services. Employers, for their part, donot know what all workers are willing to accept. Economists callthis lack of information a market failure.

Two other factors restrict supply and demand in terms of theirinfluence on wages. One is the federal minimum wage law,which sets the lowest legal hourly wage rate that may be paid tocertain types of workers. Although the purpose of the minimumwage is to help workers, some studies have shown that the oppo-site often occurs. An increase in the minimum wage causes somefirms to hire fewer low-skilled workers. This can delay the acqui-sition of job skills by teenagers and minorities and reduce theirsubsequent attractiveness in the labor force.

Another factor that restricts the influence of supply anddemand on wages is the process of wage negotiations betweenorganized labor (unions) and management. Supply and demandhave less influence on wage negotiations than do such things asthe company’s ability to pay higher wages, the length of the nego-tiated contract, and seniority—length of time on the job. You’lllearn more about organized labor in Sections 2 and 3.


minimum wage law: federal lawthat sets the lowest legal hourlywage rate that may be paid tocertain types of workers

Understanding Key Terms1. Define civilian labor force, blue-collar workers,

white-collar workers, service workers, unskilledworkers, semiskilled workers, skilled workers,professionals, minimum wage law.

Reviewing Objectives2. What are four categories of workers as deter-

mined by skill level and education?

3. Graphic Organizer Create a diagram like theone below to explain how skill, type of job, andlocation affect supply and demand in the labormarket.

Applying Economic Concepts4. The Civilian Labor Force Are you technically

a member of the civilian labor force? Explainwhy you are or are not considered part of thisgroup.

5. Understanding Cause and Effect Drawtwo line graphs showing (1) how the laborsupply would change in a highly remote loca-tion if very high wages were offered toprospective employees, and (2) how thedemand for labor would change in a firm thatjust invested in robotics. For help in usingline graphs, see page xv in the EconomicHandbook.

Critical Thinking Activity

Practice and assesskey skills with

Skillbuilder InteractiveWorkbook, Level 2.

1

Effect onDemand

Effect onSupply

Highly SkilledDangerous Job

Remote Location



ReteachHave students write questions to

which the Terms to Know are theanswers. Call on volunteers to quizthe class with their questions.

1. All definitions can be found in the Glossary.2. unskilled, semiskilled, skilled, professional3. The supply of workers in the labor market who

fit these categories (Highly Skilled, DangerousJob, and Remote Location) is low. The demandfor labor that fits these categories is high.

4. Answers should indicate that students under-stand that the civilian labor force consists ofpeople 16 years of age or older who areemployed or actively seeking work.

5. Graphs should indicate an increase in supplyof labor in the area where high wages are paidand a decrease in the demand for labor in thefirm that had invested in robotics.

Have students write a brief para-graph explaining how the forces ofsupply and demand affect wages.

Name Date Class

12, 1

civilian labor force Total number of people 16 years old or older who are employed or seeking work(page 313)

blue-collar workers Category of workers employed in crafts, manufacturing, and nonfarm labor (page 315)

white-collar workers Category of workers employed in offices, sales, or professional positions (page 315)

service workers Category of workers who provide services directly to individuals (page 315)

unskilled workers People whose jobs require no specialized training (page 316)

semiskilled workers People whose jobs require some training, often using modern technology (page 316)

skilled workers People who have learned a trade or craft either through a vocational school or as anapprentice to an experienced worker (page 316)

professionals Highly educated individuals with college degrees and usually additional education or train-ing (page 316)

minimum wage law federal law that sets the lowest hourly wage that may be paid to certain types ofworkers (page 319)

For use with textbook pages 313–319

A MERICANS AT WORK

DRAWING FROM EXPERIENCE

Did you realize that your school is like a miniature labor force? Every day white-collar, blue-collar,professional, service, skilled, semiskilled, and unskilled employees are at work around you. Thet h k t di d ffi t ff f h l i th th t k i di id d

KEY TERMS

Reading Essentials and Study Guide 12–1



318 CHAPTER 12

at relatively low wages. Even professionals in such a location maynot receive high wages. See Figure 12.4.

Restrictions on Wages If the labor market were perfectly com-petitive, the changing supply and demand for labor would result inconstantly shifting wage rates. The labor market, however, is notperfectly competitive. For one reason, the flow of information about

Supply and Demand Factors Affecting Wages

12.412.4

New YorkCity

Nashville

$14.

97$18.

83

$47.

35$4

7.77

$48.

40

$40.

38

Houston

$14.

56

NewOrleans

$21.

68

Source: Bureau of Labor Statistics

Structural andReinforcing Ironworker

Roofer

Sheetmetal Worker

Insulation Worker

A LocationA skilled ironworkerwill earn more inurban areas of theNorth or Midwest,where blue-collarwages are higher,than in the South,which has traditionallyhad lower wages.

C SkillKevin Brown, pitcher for theLos Angeles Dodgers, signeda $105 million seven-yearcontract. His wages are high because his types of skills are in high demand but in short supply.

B Type of JobPeople with dangerous jobs, suchas these firefighters specializingin oil-well fires, will receive higherwages than others who do nothave life-threatening occupations.

318

Point out that the cost of livinginfluences regional differences inwages. The cost of living in theNorth and Midwest, in general, ishigher than in the South. Wages,therefore, tend to be higher in theNorth and Midwest.

A MERICANS AT WORK

Multiple Choice: In the blank at the left, write the letter of the choice that best completes the statement or answers the question. (10 points each)

6. Which of the following is an unskilled worker?

a. nurse’s aide b. delivery personc. bricklayer d. architect

7. The largest sector of the labor force is

a. blue-collar workers. b. farm workers.c. white-collar workers. d. unskilled workers.

8 A word processor is

SCORE

A1. civilian labor force

2. blue-collar

3. professionals

4. white-collar

5. service workers

Ba. people who provide services directly to individuals

b. total number of people 16 years old or older whoare either employed or actively seeking work

c. category of workers employed in crafts, manufacturing, and nonfarm labor

d. individuals with college degrees and usually additional education or training

e. category of workers employed in offices, sales, orprofessional positions

Matching: Place a letter from column B in the blank in column A. (10 points each)

Name Date Class

12, 1

Section Quiz 12–1

Wage Discrimination Discrimination—unfair treatment based on personal characteris-tics or beliefs, such as race, gender, or religion—results in differences in wage rates. Inthe past, women and minorities were excluded from the highest-paying jobs regardless ofeducation or skill. As a result, they were trapped in lower-paying jobs. The Equal Pay Actof 1963—which required businesses to pay men and women the same for equal work—and the 1964 Civil Rights Act—which outlawed discrimination in hiring and firing—helpedto end the worst examples of discrimination. Even so, women earn as much as 20 percentless than a man with exactly the same educational achievement and skills.

Relevant Issues in Economics

Meeting LessonObjectives

Assign Section 1 Assessment ashomework or an in-class activity.

Use Interactive Tutor Self-Assessment Software to review Section 1.

L2 Analyzing Ideas Point out thatthe United States labor force hasundergone many changes. Moreoften than not, these changes haveresulted from the introduction ofnew technology. Have studentsresearch and write an illustratedpaper on the impact of the computerand computer-related innovations,such as the Internet, on the laborforce. Suggest to students that sincethese changes are ongoing, theyshould make the final paragraph ofthe paper a discussion of possiblefuture changes.

321


Terms to Know• labor union• strike• craft union• industrial union• local union• closed shop• union shop• agency shop• right-to-work laws

Reading Objectives1. What obstacles did labor

unions face when theybegan to organize in the1800s?

2. How do closed shops,union shops, and agencyshops differ?

READER’S GUIDE

To have some control over the wages they receive as wellas over other working conditions, American workersformed labor unions. A labor union is an association of

workers organized to improve wages and working conditionsfor its members. As you read this section, you’ll learn thatunions are based on the idea that workers as a group will havemore influence on management than will individual workersacting alone. (In discussing labor-management relations, theterm management refers to those in charge of a company—theexecutives and managers.)

2

labor union: association ofworkers organized to improvewages and working conditions for its members

1884 GOVERNMENT REPORT DESCRIBING WORKING CONDITIONSFOR WOMEN IN A SMALL FACTORY, BOSTON

The work is dangerous . . .[and they] are liable to get theirfingers jammed under the bench,

or caught in the die when itcomes down to press theparts of the buttonstogether. A man (althoughnot a surgeon) is providedto dress wounds threetimes for each individualwithout charge; after-wards, the person injuredmust pay all expenses. There are 35 machines in

use, and accidents are of very frequent occurrence.




MultimediaDaily Focus Transparency 39Vocabulary PuzzleMakerInteractive Tutor Self-Assessment Software


NBR’s Economics & YouPresentation Plus!


OverviewSection 2 describes the rise of

organized labor in the United Statesand how unions are organized.


Preteaching VocabularyHave students write two sen-

tences, one explaining the differ-ence between craft unions andindustrial unions, the otherexplaining the differences amonga closed shop, a union shop, andan agency shop.


READER’S GUIDE

SPOTLIGHT

SPOTLIGHT ON THE ECONOMY

With only 7 candidates for every 10 tech-nology jobs, the information technology

(IT) staff squeeze is getting worse. Turnoverrates are 20% a year and rising. American com-panies have an estimated 190,000 IT openings.Where to find folks? Here’s an idea: Be nicer tothe ones you have. That’s the key suggestion ina new survey by human-resources consultantsat the Hay Group in Philadelphia.

Top reasons tech workers bolt? Poor careerdevelopment, boring work environment, low pay,not enough chances for promotion, and notenough technology to work on. The answerscame from a study of IT professionals who hadleft their jobs in the prior 12 months. Says HayGroup’s Vincent Milich: “It’s surprising that evenamid this worker shortage, tech companies arestill not effectively addressing these key issues.”

Milich says companies can combat malaise[onset of illness] by “taking the pulse of the work-force more often and implementing programsthat address employees’ concerns.”

Translated: Pay more, make your companymore fun, and help workers develop and advancein their jobs. It’s not rocket science, or even astough as programming C++ yourself, and it’sprobably less expensive than recruiting and train-ing new workers.—Reprinted from June 21, 1999 issue of Business Week by special

permission, copyright © 1999 by The McGraw-Hill Companies, Inc.

Think About It1. According to the article, in what three ways could

companies “address employees’ concerns”?

2. Why should companies try to hold on to their ITemployees?

Check It Out! In Section 1 you learned how supply anddemand affect wages. In this article, read to learn whatcompanies should do to keep valued employees.

How to Keep the Tech Workers That You’ve Got

How to Keep the Tech Workers That You’ve Got

The Top Five Reasons Tech Workers Quit*

Under 30 Over 30Not enough advancement 87% 70%Too boring 85 71Want more time off 56 43Want company-paid tuition 39 16Want more support from boss 67 55

*Data: Hay Group

320

To emphasize the problem facingtech companies, mention that a survey conducted in 1999 by theAmerican Management Associationfound that nearly two-thirds ofcompanies were having trouble fill-ing skilled jobs. Then point out thatto tackle this problem, some com-panies have taken quite extrememeasures. Some offer cash “sign-on” bonuses to new employees,while others encourage workers tostay by providing new cars or stockin the company.

Answers to Think About It

Some companies are not tak-ing the enlightened approachrecommended by the Hay Group.If they have trouble replacing theworkers who have left, they sim-ply load more work on theemployees who remain.

1. increase pay, make the company more fun, and help workers develop and advance intheir jobs

2. because it is very expensive to recruit and train new workers

To find up-to-date news andanalysis on the economy, busi-ness, technology, markets,entrepreneurs, investments,and finance, have studentssearch feature articles and spe-cial reports on the BusinessWeek Web site.www.businessweek.com




O RGANIZED LABOR

1. What is the current trend in labor union membership?

2. Why might it be more useful to consider union membership interms of percentage of the work force, instead of in terms ofactual numbers of members?

100

90

80

70

60

50

40

30

20

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Source: Bureau of Labor Statistics*estimated

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Year

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323


strike: deliberate work stoppageby workers to force an employerto give in to their demands

craft union: union made up ofskilled workers in a specific tradeor industry

fired and blacklisted—kept from being employed. Strikes, or delib-erate work stoppages by workers to force an employer to give in totheir demands, often resulted in violence between strikers andpolice, as described in Figure 12.5. Not until the mid-1930s didCongress begin to pass laws to regulate labor-management rela-tions. Several of these laws are explained in Figure 12.6.

The American Labor Movement For much of its history,organized labor in the United States has been split into two groups:craft unions and industrial unions. A craftunion is made up of skilled workersin a specific trade or industry, such ascarpentry or printing. The first per-manent federation, or organizationof national labor unions, was theAmerican Federation of Labor(AFL), composed of craft unionsand led by Samuel Gompers. SeeFigure 12.7 at right.

The AFL Samuel Gompers estab-lished the American Federation of Laborand served as its president from 1886 to1924. Among other causes, he fought forthe eight-hour workday.

12.712.7

FIGURE 12.6FIGURE 12.6 Labor-ManagementLegislation

Legislation

Norris-LaGuardia Act, 1932

Wagner Act, 1935

Taft-Hartley Act, 1947

Landrum-Griffin Act, 1959

Description

Limits the power of the courts to stop picketing and boycotts, andmakes yellow-dog contracts illegal. This type of contract is thepractice whereby employers require that employees pledge notto join a union.

Guarantees labor’s right to organize and bargain collectively. Setsup National Labor Relations Board (NLRB) to oversee the estab-lishment and operation of unions.

Outlaws certain strike tactics, permits states to pass laws makingunion shops illegal, and allows the President to delay a strike if itwill threaten the nation’s health and safety.

Increases government control over unions and guarantees unionmembers certain rights, such as freedom of speech in unionactivities and control over union dues.



IndependentPracticeL1 Constructing a Time Line Havestudents work in small groups to cre-ate illustrated time lines of organizedlabor in the United States from theearly 1800s to the present day. Sug-gest that students include 10 to 15entries in their time lines. Also, pointout that time lines should be con-structed with sheets of butcherpaper so that they may be displayedon the walls of the classroom.

BLOCK SCHEDULING



Development of Labor UnionsWorking conditions in the 1800s were very different from

those of today. Buildings were often poorly lighted and ventilated,and the machinery was sometimes dangerous to operate. Theworkweek was long, and wages were low. No unemploymentinsurance helped those who were out of work until they foundnew jobs. Health-care benefits, sick leave, and paid vacations andholidays did not exist.

Workers began to form unions to force employers to improvewages and working conditions, shorten the workday, and endchild labor. Unionism, however, met with strong resistance. Inthe 1800s, state legislatures—influenced by business interests—passed laws against unions, and courts upheld them.

Many businesses refused to hire union members or deal withunions. Workers who were found trying to organize unions were

322 CHAPTER 12

Chicago

Coeurd'Alene

PullmanHomestead

LawrenceCT

1894 Pullman Strike About14,000 troops attack strikingrailroad workers, killing 30.

1887 Sugarcane Workers Strike Statemilitia breaks strike, killing 30 people,mostly African Americans.

1892 Homestead Massacre Steelworkers strike to protest a wagecut; 13 people are killed.

1902 Anthracite Coal StrikeAbout 140,000 miners striketo win union recognition.

1912 Textile StrikePolice beat 40strikers' hungrychildren.

WA

OR

CACO

TX

NV

AZNM

UT

ID

MT

WYSD MN

NE IAIL

WI

MI

IN OH

KY

TN

LA

AKOK

MS AL

VA

PA

VT MENH

NY MARI

WV

NC

FL

Labor Unrest

N

1892 Silver Mines Unrest Minersstrike to protest wage cut; thestate jails more than 1,000 workers.

1886 Haymarket Affair A bombexplodes at a labor rally, killing7 police officers. Police fire intothe crowd, killing 10.

FIGURE 12.5FIGURE 12.5 Labor’s Early Struggle for Recognition The major weapon for workers touse against management was the strike. More often than not, however, striking unionswere viewed as dangerous by the public, who turned against them.

322

Guided PracticeL2 Analyzing Ideas Call on stu-dents to identify the reasons whyunions were popular and grew instrength during the years from thelate 1800s to the mid-1900s. Thenpoint out that since the 1980s, unionmembership has been declining. Askstudents to write a paragraph dis-cussing the possible causes for thischange.

L ECTURE LAUNCHERThe first known labor strikes occurred in 1768. Journeymen tailors went on strike in New YorkCity to protest a cut in their wages. What are labor unions? What does their existence sayabout the power of the individual worker?

I. Development of Labor Unions

A. In the 1800s working conditions were terrible and unions were often illegal.

B. Strikes often resulted in violence between workers and the police.

C. The first permanent union, The American Federation of Labor (AFL) was made up ofcraft unions and led by Samuel Gompers.

D. In 1938, the Congress of Industrial Organizations (CIO) was created, and the automo-bile and steel industries were the first to be organized.

E. AFL and CIO joined forces in 1955 because they felt greater gains could be made if thecraft and industrial unions worked together.


The labor movement’s main goal was to protect workers and help them earn fairwages. What do you suppose are the main goals of labor unions today? (Answers mayvary. Students may suggest that unions still try to get workers fair wages. Others may feelthat unions are not as needed today as they used to be.)

12-2

PAGES 322–324


ECONOMICS & YOU



ASK: Why did unions firstbecome popular? They foughtfor safer working conditions,shorter working hours, and suchbenefits as paid vacations andhealth insurance.


Limited English Proficiency Students with limited English proficiency may have diffi-culty understanding the types of labor unions that developed and how unions are orga-nized. They may find it easier to comprehend the material if they outline the section.Suggest that they list the different types of unions and levels of union operations and themajor characteristics of each in outline form.

Refer to Inclusion for the Social Studies Classroom Strategies and Activities forstudents with different learning styles.



RGANIZED LABOR

RECALLING THE FACTS

Directions: Use the information in your textbook to answer the questions.

1. Why do workers organize into labor unions?

2. What idea are labor unions based on?

3. In the 1800s, how did businesses try to stop labor unions?

4. What is the purpose of a strike?

5. How are craft and industrial unions organized?

Craft unions:

Industrial Unions:

Name Date Class

12-2

O


Have students review the infor-mation in Figure 12.6. Thenpoint out that public opinionturned against unions in the mid-1940s. Some people were upsetby the labor unrest—in 1946alone, 116 million workdays werelost to strikes. Other peoplefeared that Communists had infil-trated the unions.

Organize students into several groups, and have groups investigate the roles thatwomen, African Americans, and other minority groups played in the development of theAmerican labor movement. Have them use their findings to create a brochure that mightaccompany a museum exhibit on minorities and organized labor in the United States.Suggest that brochures include an overview of the exhibit and several exhibit items—paintings, pictures, charts, graphs, and other visuals—accompanied by explanatory cap-tions. Have groups present and discuss their brochures. BLOCK SCHEDULING


325

WA

OR

CA

NM

MT

MN

IL

WI

MI

IN OH

CO

PA

VT MENH

NY MARI

CT

NJDE

Right-to-Work State

AKHI

MD

NV

AZ

UT

IDWY

SD

ND

NE IA

KS

TX

MO KY

TN

LA

AKOK

MS AL

VAWV

NC

SC

GA

FL

N

Source: National Right to Work Organization

right-to-work laws: state lawsforbidding unions from forcingworkers to join and pay uniondues

Supporters of union shops and agency shops argue thatemployees in companies that are unionized should be required to pay union dues because they benefit from contracts the unionnegotiates. Opponents believe that a person should not berequired to join a union.

Since 1947 a number of states, as shown in Figure 12.8, havepassed right-to-work laws that forbid union shops. These lawsallow workers to continue working in a particular job without join-ing a union. The benefits negotiated by the union must be made

States With Right-to-Work LawsFIGURE 12.8FIGURE 12.8

AFL-CIO members








An industrial union is made up of all the workers in an indus-try regardless of job or level of skills. Attempts to organize indus-trial unions date to the late 1800s and the leadership of Eugene V.Debs, founder of the American Railway Union. The first significanteffort to unionize unskilled and semiskilled workers did not begin,

however, until the formation of the Congressof Industrial Organizations (CIO) in 1938.

The AFL-CIO During the late 1930s andearly 1940s, both the AFL and the CIOlaunched organizing campaigns that madethe lines between industrial and craft unionsless clear. AFL unions began recruiting semi-skilled and unskilled workers, while the CIObegan organizing workers in the skilledtrades. The resulting rivalry cost both unionfederations time and effort.

By the mid-1950s, union leaders realizedthat the labor movement would make greatergains if craft and industrial unions workedtogether. As a result, the two federationsmerged in 1955 to form the present AFL-CIO.

How UnionsAre Organized

Organized labor operates at three levels:the local union, the national or internationalunion, and the federation.

Local Unions A local union consists of the members of aunion in a particular factory, company, or geographic area. Thelocal deals with a company by negotiating a contract and makingsure the terms of the contract are kept. The influence that a localhas often depends on the type of membership policy it has nego-tiated with management.

Not all local unions are alike. Membership requirements andthe ways in which management relates to union members varyfrom one kind of shop to another. In a closed shop, companiescould hire only union members. The Taft-Hartley Act of 1947 out-lawed closed shops, however. In a union shop, a new employeemust join the union after a specific period of time, usually threemonths. In an agency shop, employees are not required to jointhe union, but they must pay union dues.

Overseas factories drew attention in the 1990s afterhuman-rights groups disclosed that clothing sold inWal-Mart was produced in a Honduran sweatshop. TheVietnamese factory making Nike products was accusedof having dangerous levels of chemicals. The WhiteHouse convened manufacturers and human-rightsgroups in 1996 to address such abuses.

Since then, Nike and other companies have takensteps to improve conditions for workers. At Nike’sVietnamese factory, for example, ventilation has beenimproved and workers are using a less toxic glue.Federal contractors are required to certify that no abu-sive child labor went into the goods they buy. ■

Improving WorkingConditions Worldwide

324 CHAPTER 12

industrial union: union made upof all the workers in an industryregardless of job or skill level

local union: members of a unionin a particular factory, company,or geographic area

closed shop: company in whichonly union members could behired

union shop: company thatrequires new employees to join aunion after a specific period of time

agency shop: company in whichemployees are not required to jointhe union, but must pay union dues

324

L2 Writing a Report Have studentsselect a federal law that regulatesorganized labor. Have them write areport on this law, discussing thereasons for its enactment; its mainpoints; and any important outcomesfor workers, businesses, or the econ-omy as a whole.

Attitudes Toward Unions After years of being viewed negatively by many Americans,unions appear to be winning public support once again. A survey conducted in 1999 foundthat in the six years since 1993, negative attitudes toward unions dropped from 34 percentof the population to 23 percent. In the same period, positive attitudes toward unionsshowed a moderate rise. Among Americans aged 18–34, positive attitudes exceeded neg-ative attitudes two to one. This approval among younger people, union leaders feel, bodeswell for recruitment in the future.

Extending the Content

Have students study the mapin Figure 12.8. ASK: In whichregions of the United States aremost right-to-work statesfound? the South and West

Name Date Class

12, 2

O RGANIZED LABOR


6. The word management refers to

a. those in charge of a company. b. unskilled workers in a company.c. union leaders. d. skilled workers in a company.

7. Which of the following describes reactions to unions in the 1800s?

a. state laws supported unions b. businesses favored unionsc. states passed laws against unions d. workers opposed unions

SCORE

A1. labor union

2. strike

3. craft union

4. industrial union

5. closed shop

Ba. union made up of all the workers in an industry

regardless of job or skill level

b. deliberate work stoppage by workers to force anemployer to give in to their demands

c. association of workers organized to improve wagesand working conditions for its members

d. company in which only union members may behired

e. union made up of skilled workers in a specific tradeor industry

Matching: Place a letter from Column B in the blank in Column A. (10 points each)

Section Quiz 12–2

Unions and Wages Economists have tried to evaluate the economic impact of unionsby looking at wages in unionized and nonunionized industries. Several studies found thatunion workers received wages that were 10 to 17 percent higher than those of nonunionworkers. However, most economists do not feel that unions have driven up the overalllevel of wages in the economy. In other words, businesses are not paying wage rateshigher than they can bear. Union workers’ higher wages, then, come not at the expense ofbusinesses but at the expense of the wages of nonunion workers.

Relevant Issues in Economics

Economic Connectionto... HistoryEconomic Connectionto...

May Day In countries around theworld, May 1—May Day—is cele-brated as International Workers’Day or Labor Day. One notableexception is the United States,where Labor Day is celebrated onthe first Monday in September.May Day actually commemoratesan event in American labor history.The American Federation of Labor(AFL) declared a national strike onMay 1, 1886, to demand an eight-hour workday. Some 350,000workers across the United Statesresponded and struck. In the fol-lowing years, this first major effortto win an eight-hour workday wasmarked by May Day celebrationsin other countries.

327

327

■ President of theUnited AutomobileWorkers (UAW),1946–1970

■ President of theCongress ofIndustrialOrganizations (CIO), 1952–1955

■ Helped to bringabout the merger of the AmericanFederation of Labor(AFL) and the CIOin 1955

■ Posthumouslyawarded thePresidential Medalof Freedom for dis-tinguished civilianservice in peace-time in 1995

Walter Reuther ranks amongthe greatest American

labor leaders of the twentieth cen-tury. A driving force in the union-organizing movement of the1930s and 1940s, he was the firstunion leader to negotiate for, andwin, benefits that workers todaytake for granted—cost-of-livingraises, pension plans, employer-funded health insurance, andprofit sharing. Reuther was alsodeeply involved in the civil rightsand environmental movements.As another union leader noted,“Walter Reuther was on the frontlines of the battle for a betterworld.” In the excerpt below,Reuther explains his philosophyof unionism:

“My main point is that thelabor movement is about thatproblem we face ‘tomorrow morn-ing’. . . . The guys have a right toexpect the labor movement to dealwith that problem. I can’t givethem some philosophical baloneyand say: Well, fellows, you know

we’re operating way up here in thestratosphere and you shouldn’t getexcited about these little problemsthat are bothering you everymorning.

But to make that the sole pur-pose of the labor movement is tomiss the main target. The labormovement is about changing society.I mean, I don’t think I am eloquentwhen I say to a guy: What good is adollar an hour more in wages ifyour neighborhood is burningdown? What good is another week’svacation if the lake you used to goto, where you’ve got a cottage, ispolluted and you can’t swim in itand the kids can’t play in it? Whatgood is another $100 pension if theworld goes up in atomic smoke?”Checking for Understanding

1. What do you think Reuther meant bythe “little problems that [botherworkers] every morning”?

2. What did Reuther think was the main“target” of the labor movement?

Walter ReutherLABOR LEADER (1907–1970)

327

BackgroundPoint out that Walter Reuther

was a leader in the DemocraticParty, and he served as an adviserto Democratic presidents fromFranklin Roosevelt to LyndonJohnson. Reuther was especiallyinfluential during Johnson’s admin-istration. He played a major role inthe passage of the Civil Rights Actof 1964 and in the development ofJohnson’s War on Poverty program.

Answers to Checking for Understanding1. Answers may vary. Most students will suggest such problems as paying the bills and

making sure families have enough to eat.2. Reuther thought the main target of unions was to change society.

After students read the excerpt,underscore that Reuther stronglybelieved that unions should work toimprove society as a whole. ASK:Do you think that unions shouldbe involved in social issues suchas civil rights and the environ-ment, or do you think that theyshould limit their actions to work-place issues such as hours andwages? Encourage students toexplain their responses.



available to workers who do not join the union. Unions have lesspower in states with right-to-work laws than in other states.

National Unions Above the locals are the national unions.These organizations are the individual craft or industrial unionsthat represent locals nationwide. Those unions that also have mem-bers in Canada or Mexico are often called international unions.

National unions send in organizers to help employees organizecampaigns to set up locals. To help in negotiating a contractbetween a local and a particular company, the nationals providelawyers and other staff members. In certain industries such as steeland mining, the national union negotiates the contract for the entireindustry. After the majority of union members accept the contract,all the locals within the industry must work under the contract.Some of the largest unions are the International Brotherhood ofTeamsters, the United Automobile Workers (UAW), and the UnitedSteelworkers of America (USW).

Federation Level At the federation level is the AFL-CIO,which is made up of national and international unions. More than70 unions with about 13 millionmembers are associated with theAFL-CIO.

326 CHAPTER 12

Understanding Key Terms1. Define labor union, strike, craft union, indus-

trial union, local union, closed shop, union shop,agency shop, right-to-work laws.

Reviewing Objectives2. What obstacles did labor unions face when they

began to organize in the 1800s?

3. Graphic Organizer Create a chart like theone below to summarize the differences amongclosed shops, union shops, and agency shops.

Applying Economic Concepts4. Economic Institutions List and evaluate the

four pieces of legislation highlighted in Figure12.6 on page 323. Rate the acts as follows:“+” for acts that benefited unions, “–” for actsthat harmed unions, “0” for acts that had amixed impact on unions.




2

5. Synthesizing Information According toFigure 12.8 on page 325, is your state aright-to-work state? How do right-to-worklaws affect unions? Do you agree or disagreewith right-to-work laws? Explain your answer.

Type of Union Summary

326

ReteachHave students use the Terms to

Know to write a summary ofSection 2.

1. All definitions can be found in the Glossary.2. State laws outlawed unions; businesses

refused to hire union members or to deal withunion representatives, and often fired andblacklisted union organizers.

3. closed: companies may hire only union work-ers; union: new employees must join the unionafter a set period of time, usually three months;

agency: employees are not required to join theunion, but must pay union dues

4. Norris-LaGuardia Act +; Wagner Act +; Taft-Hartley Act –; Landrum-Griffin Act 0

5. See map on page 325 for right-to-work states.Unions have less power in areas where thereare right-to-work laws.

In a class discussion, have stu-dents outline the contributions andlimitations of labor unions.

Name Date Class

12, 2

labor union Association of workers organized to improve wages and working conditions for its members(page 321)

strike Deliberate work stoppage by workers to force an employer to give in to their demands (page 323)

craft union Union made up of skilled workers in a specific trade or industry (page 323)

industrial union Union made up of all workers in an industry regardless of their job or skill level (page 324)

local union Members of a union in a particular factory, company, or geographic area (page 324)

closed shop Company in which only union members may be hired (page 324)

union shop Company that requires new employees to join a union after a specific period of time (page 324)

agency shop Company in which employees are not required to join a union, but must pay union dues(page 324)

right-to-work laws State laws forbidding unions from forcing workers to join and pay union dues (page 325)


O RGANIZED LABOR


You might expect that service employees, like the cooks in your cafeteria, could be members of alabor union. However, would it surprise you that your teachers may working under a union contract with your school system? The National Education Association (NEA) and the American

KEY TERMS


329


NegotiationsNegotiations take place when labor and management meet to

discuss in detail a wide range of contract issues. Figure 12.9 onpage 330 lists the most important issues that labor and manage-ment may negotiate, including working hours, fringe benefits, anda cost-of-living adjustment (COLA). In most cases, negotiationsare friendly and result in an agreement that satisfies all parties.

Mediation If negotiations become hostile or compromise breaksdown, labor and management may try mediation. Mediation occurswhen a neutral person steps in and tries to get both sides to reachan agreement. The mediator suggests possible solutions and worksto keep the two sides talking with each other.

The federal government, through the Federal Mediation and Conciliation Service (FMCS), pro-vides a mediator free of charge upon request ofeither union or management. In a typical year,FMCS mediators are involved in thousands ofnegotiations. A number of state and private medi-ators also help resolve disputes.

Arbitration If mediation fails, the negotiationprocess may go one step further to arbitration. Inarbitration, the two sides submit the issues theycannot agree on to a third party for a final deci-sion. Both sides agree in advance to accept thearbitrator’s decision, although one or both sidesmay not be completely happy with the outcome.The FMCS often helps in these cases by provid-ing labor and management with a list of privatearbitrators in their area.

Strikes and ManagementMost contracts are settled at the bargaining

table. Sometimes, however, negotiations breakdown and a strike results. The number of strikesin the United States has declined sharply since 1975, as shown in Figure 12.10 on page 331.

Strikers usually walk up and down in front of their workplacecarrying picket signs that state their disagreement with the com-pany. Picketing is meant to discourage workers from crossing thepicket line to work for the employer. It is also aimed at embarrass-ing the company and building public support for the strike.

Job Description■ Prepare infor-

mation formanagementor union to useduring collec-tive bargainingnegotiations

■ Interpret unioncontract issues

Qualifications■ Master’s degree

in labor rela-tions or humanresources, andbackground inlaw

Starting Salary: $39,900

Job Outlook: Good

CAREERSLabor RelationsSpecialist

—Occupational Outlook Handbook, 1998–99

cost-of-living adjustment(COLA): provision calling for anadditional wage increase eachyear if the general level of pricesrises

mediation: a neutral person triesto get both sides to reach anagreement during negotiations

arbitration: union and manage-ment submit the issues they can-not agree on to a third party for afinal decision

picketing: action of strikers whowalk in front of a workplace carry-ing signs that state their disagree-ment with the company



Guided PracticeL1 Illustrating Ideas Review thetext on collective bargaining withstudents. Ensure that studentsunderstand that when conflicts arisebetween labor and management,mediation and arbitration may beused to find compromises. Then askstudents to create a flowchart show-ing the collective bargaining process.Call on volunteers to display andexplain their flowcharts.




MultimediaDaily Focus Transparency 40Vocabulary PuzzleMakerInteractive Tutor Self-Assessment Software


NBR’s Economics & YouPresentation Plus!


328 CHAPTER 12

Terms to Know• collective bargaining• cost-of-living adjustment

(COLA)• mediation• arbitration• picketing• boycott• lockout• injunction

Reading Objectives1. What are the major issues

over which union contractsare negotiated?

2. What workers’ actions andmanagement responsesmay accompany a strike?

3. How has collective bargain-ing in the United Stateschanged in recent years?

READER’S GUIDE

Collective bargaining, as mentioned above, is the processby which unions and employers negotiate the conditionsof employment. At the center of the collective bargaining

process is compromise. The company wants to keep wages andbenefits low to hold its labor costs down and remain competitivein the market. The union wants to increase wages and benefits forits members as much as possible. As you read this section, you’lllearn that both sides must be prepared to give and take a little.

THE NEW YORK TIMES, JUNE 30, 1998

In a move that could lead to the first work stoppagein National Basketball Association history, the 29 leagueowners Monday agreed to lock out the players and suspend all league businessuntil the two parties sign a new laboragreement.

The lockout will beginat midnight Tuesdaynight, when thecurrent collectivebargaining agree-ment expires. Withno negotiations plannedand several major eco-nomic issues to beresolved, next seasonmay not start on time.

3

collective bargaining: processby which unions and employersnegotiate the conditions ofemployment

328

OverviewSection 3 describes the basic fea-

tures of collective bargaining andexplains how unions have declinedin recent years.


Preteaching VocabularyHave students locate the defini-

tions of the Terms to Know in theGlossary. Then have them useeach term correctly in sentences.


READER’S GUIDE

L ECTURE LAUNCHERFederal employees cannot strike. Any kind of strike or halting of work by federal employeeswas outlawed by the Labor-Management Relations (Taft-Hartley) Act of 1947. The govern-ment, therefore, has the right to intervene and cease all strikes that occur, as PresidentReagan did to the air-traffic controller strike in 1981. Besides striking what are some of theother ways for laborers to express dissatisfaction. What is collective bargaining? Why are companies sometimes reluctant to raise wages? What is required for labor and managementto resolve their differences?

I. Negotiations

A. Labor and management meet to discuss contract issues

B. Mediation takes place when labor and management cannot agree or become hostile;instead they find a neutral person to try to help them reach an agreement.

C. Arbitration takes place when mediation fails; labor and management then ask a thirdparty to make a decision, agreeing to unconditionally accept that decision.


Why do you think arbitration is a last resort for management and labor? (Becauseboth sides must agree to do what the arbitrator says before the decisions are even made.Either side might be very disappointed by the contract—in fact, they may find they were better off agreeing before the arbitration.)

12-3

PAGE 329


When negotiations break down,a process called fact-finding maybe used. Under this procedure,labor and management agree tohave an independent third partyreview the issues and recommendpossible solutions. Fact-finding isparticularly useful when one orboth parties have been less thantruthful in an attempt to win pub-lic support or when one partydoes not believe the claims of theother.

Learning Disability To help learning disabled students, illustrate the importance ofheadings and subheadings for understanding the framework of each section. Model stu-dent use by asking questions such as: “What would I do if I wanted to know what eachsection was about?” For Section 3 read: Negotiations, Mediation, Arbitration; Strikes andManagement, Lockouts, Injunctions; and so on. Ask students to rephrase each set ofheadings using complete sentences.

Refer to Inclusion for the Social Studies Classroom Strategies and Activities forstudents with different learning styles.





C OLLECTIVE BARGAINING

1. What trend or trends can you identify in the graph?

2. What conclusions can you draw from the graph?

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Collective Bargaining Settlements—Average Change in Wage Rates

1970

Manufacturing industries Nonmanufacturing industries

1975 1980 1985 1990 1995

Years



331

boycott: economic pressureexerted by unions urging the pub-lic not to purchase the goods orservices produced by a company

lockout: situation that occurswhen management preventsworkers from returning to workuntil they agree to a new contract

Striking unions may also use a boycott to exert more eco-nomic pressure against a firm. In a boycott, unions urge the pub-lic not to purchase goods or services produced by a company. Inaddition, unions may ask politicians to push management for asettlement or to publicly support the union’s demands.

Strikes can drag on for months and even years. After a longperiod of time, strikers sometimes become discouraged. Some maydecide to go back to work without gaining what they wanted. Inmost cases, however, strikes are settled as management and laborreturn to the negotiating table and work out an agreement.

Lockouts When faced with a strike, management has methodsof its own to use against strikers. One is the lockout, whichoccurs when management prevents workers from returning towork until they agree to a new contract. Another tactic is to bringin strikebreakers, called scabs by strikers. These are people willingto cross a picket line to work for the terms the company offers.

Strikes Compare the trend in strikes with what is happening in unionmembership. How do you think the two are related?

Nu

mb

er

of

Str

ikes

Years

400

300

200

100

0

1950 1960 1970 1980 1990 1998

Strike!

Strike!Strike!

Strike! Strike!

Labor Strikes Involving 1,000 Workers

Strike!

Source: Standard & Poor’s


For an online update of this graph, visit ett.glencoe.com and click onTextbook Updates—Chapter 12.



IndependentPracticeL2 Radio News Reports Have stu-dents research a recent strike in theirstate. Have them note the reasons forthe work stoppage, the proceduresused to end the dispute, and the res-olution. Have students present theirfindings in the form of a radio newsreport lasting two to three minutes.Call on volunteers to “broadcast”their reports to the class. BLOCK SCHEDULING



330 CHAPTER 12

Union Contract Issues

Issue

Wages

Working Hours

Fringe Benefits

Working Conditions

Job Security

Grievance Procedures

Description

Most contracts provide for wage increases of a certain percentagefor each worker during each year of the contract. Some contractsalso provide for an additional increase each year if the generallevel of prices in the economy rises beyond a certain amount.This provision is known as a cost-of-living adjustment.

The contract establishes the number of hours a day that employ-ees must work. Employees who work longer hours must usuallybe paid extra wages, called overtime pay.

Fringe benefits are payments other than wages made to employ-ees. These can include health and life insurance, a retirementplan, and time off for vacations and holidays.

Contracts often provide for a joint union and management com-mittee to ensure that safe and pleasant working conditions exist.Working conditions are a particularly important issue to employ-ees in industries that deal with poisonous substances or danger-ous machinery.

At issue under job security is protection against layoffs becauseof technological change or a slowdown in business. Most con-tracts do not forbid layoffs, but rather set up rules that theemployer must follow when laying off workers. For example,those with the least seniority—amount of time spent with thecompany—are usually laid off first.

Grievance procedures are a set of formal rules usedto resolve a dispute between union membersand management. A grievance, or complaint, may be filed if one side feels that the other is not living up to the terms of the contract. If theunion and the company can-not settle the grievance, a thirdparty will often be asked tojudge the matter objectively.


330

L2 Understanding Ideas On theboard, write the title “Unions.”Under the title, draw a two-columnchart with “Supporters’ Views” and“Critics’ Views” as column headings.Call on students to come to theboard and enter in the chart infor-mation on how unions are viewedtoday. Have students use this infor-mation to write a brief essay titled,“Unions Today: Pros and Cons.”Have several students read theiressays to the class.

Have students review the infor-mation in Figure 12.9. Then leadthem in a discussion of the fol-lowing questions: How wouldyou rank these issues in order ofimportance if you representedlabor? How would you rankthem if you represented manage-ment? If you represented labor,which of these issues would yoube willing to give the mostground on and why? If you repre-sented management, which ofthese issues would you be will-ing to give the most ground onand why? Conclude by pointingout that collective bargaininginvolves such decisions.

Inform students that in recent years, the AFL-CIO and its affiliated unions have madegreat efforts to recruit new members. Then organize students into several groups, and havegroups research how union recruiting methods have changed recently. Suggest that theyconsider such questions as: Have unions increased spending on recruiting? If so, by howmuch? Do unions use different recruiting tactics than they did in the past? Are unions aimingrecruiting drives at different segments of the working population than they did in the past?Direct groups to use library resources and the Internet in their research. If possible, theymight also interview union representatives. Have groups present their findings in oral reports.


Name Date Class



OUTLINING

Directions: Locate the heading in your textbook. Then use the information under the heading to help youwrite each answer.

I. Negotiations

A. Introduction

1. When do negotiations take place?

2. What types of things do labor and management negotiate?

B. Mediation—Why is mediation sometimes necessary in negotiations?

C. Arbitration—How does arbitration work?

II. Strikes and Management

A. Introduction

1. What is the purpose of picketing?

12-3


Answer: Most students will suggestthat as union membership declines,so too will the numbers of strikes,because with fewer unionized work-ers there are fewer workers torespond to union calls for workstoppages.

Have students role-play a labor-management dispute that must be mediated. Selectthree students to act as mediators, and have them research conflict resolution methodsused in mediation. Then select six students—three to act as union representatives andthree to act as management representatives—and have them draw up opposing positionsregarding wages, working conditions, and health benefits. Have the mediators negotiatean agreement acceptable to both labor and management. Have the rest of the class cri-tique the mediation, noting what each side lost and gained. BLOCK SCHEDULING

Free Enterprise Activity

333333


now enjoy a sense of security that helps to maintain some controlover their jobs and lives.

Union supporters also note that the collective bargaining processhas brought more order and fairness to the workplace. It has madeclear the rights and responsibilities of both management and labor.

Because working conditions have improved so dramaticallyover the years, nonunion workers often see little to gain fromjoining a union. Figure 12.11 shows how much union member-ship has declined since the 1940s. In addition, the nature of theeconomy itself is changing. More jobs are opening in the white-collar and service sectors, whereas blue-collar jobs are decreasingdue to automation.

Critics The labor movement also has its critics. Some oppo-nents charge that unions have grown so large and bureaucraticthat they are out of touch with their members’ needs. Othersclaim that increased wages are passed on to consumers in theform of higher prices.

Employers often argue that union rules decrease productivity.They point to rules that slow the introduction of new technologyor require more employees than necessary to do a job. In addi-tion, corruption among some labor leaders has damaged thereputation of organized labor with the public.

Understanding Key Terms1. Define collective bargaining, cost-of-living

adjustment (COLA), mediation, arbitration,picketing, boycott, lockout, injunction.

Reviewing Objectives2. Graphic Organizer Create a chart like the

one below to list and describe the major issuesover which union contracts are negotiated.

3. What workers’ actions and managementresponses may accompany a strike?

4. How has collective bargaining in the UnitedStates changed in recent years?

Applying Economic Concepts5. Labor Unions What is your opinion of the

influence of unions today? How is your opinionsimilar to or different from the information givenin the text concerning the decline of unionism?

6. Making Generalizations Write two news-paper accounts of a fictional local strike. Oneaccount should be from the perspective of aunion member. The other account should bewritten from the standpoint of management.




3

Issue Description



ReteachTo help students understand col-

lective bargaining procedures andthe decline of unions, have themdevelop an annotated outline ofSection 3.

1. All definitions can be found in the Glossary.2. Students’ answers should include the informa-

tion found in Figure 12.9 on page 330.3. workers: picketing, boycotts; management:

lockouts, strikebreakers, injunctions4. It has declined due to the decline in union

membership.

5. Answers will vary. Ensure that students supporttheir answers with explanations.

6. Newspaper articles will vary. Have studentsshare and compare their articles.

Have students speculate on howissues between unions and manage-ment might be handled other thanthrough collective bargaining.

Name Date Class

12, 3

collective bargaining Process by which unions and employers negotiate the conditions of employment(page 328)

mediation Process in which a neutral third party steps into negotiations and tries to get both sides toreach agreement (page 329)

cost-of-living adjustment (COLA) Provision providing an additional wage increase if the general pricesrise beyond a specified level during the year (page 329)

arbitration Process in which negotiating parties submit issues they cannot agree on to a third party for afinal decision (page 329)

picketing Activity in which striking workers carry signs outside their workplace that state their disagree-ment with their employer (page 329)

boycott Economic pressure exerted on a company by refusing to purchase its goods or services (page 331)

lockout Process in which an employer prevents workers from working until they agree to a new contract(page 331)

injunction Court order that prohibits some activity (page 332)




Suppose that students at your school wanted to change some school policy. How likely wouldachieving the change be if a few students, speaking for themselves, went to the principal individ-ually and asked for the change? Do you think the request would get more attention if just onet d t t t i i l b t ith titi i d b th ti t d t b d ?

KEY TERMS




332 CHAPTER 12

injunction: court order prevent-ing some activity

Injunctions Management sometimes requests a court injunction tolimit picketing or to prevent a strike from continuing or even occur-ring. An injunction is a legal order of a court preventing some activ-ity. Under the Taft-Hartley Act of 1947, the President of the UnitedStates can obtain an injunction to delay or halt a strike for up to 80days if the strike will endanger the nation’s safety or health. Duringthis cooling-off period, the two sides must try to reach a settlement.

Decline of UnionsThe establishment of the AFL in 1886 is considered the begin-

ning of the modern union era. Since that time, unions haveachieved many of their goals. Union supporters list among theiraccomplishments better wages and working conditions for allemployees—union and nonunion. They point out that many workers

Declining Union Membership The labor movement today faces manyproblems. The percentage of union members among the labor force reached a highin the mid-1940s and has been declining since 1955.

1940 ’45 ’50 ’55 ’60 ’65 ’70 ’75 ’80 ’85 ’90 ’95 2000

Perc

en

t o

f W

ork

forc

e

40

35

30

25

20

15

10

5

0

Years

Union Membership

Source: U.S. Department of Labor, Bureau of Labor Statistics


For an online update of this graph, visit ett.glencoe.com and click on Textbook Updates—Chapter 12.

332




ASK: What has happened tounion membership since the1950s? It has steadily declined.



6. Which of the following union contract issues deals with a cost-of-living adjustment?

a. wages b. fringe benefitsc. working conditions d. job security

7. The state of negotiations in which union and management submit the issues they cannot agree on to athird party for a final decision is called

SCORE

A1. collective bargaining

2. picketing

3. boycott

4. lockout

5. injunction

Ba. situation that occurs when management prevents

workers from returning to work until they agree to anew contract

b. court order preventing some activity

c. process by which unions and employers negotiatethe conditions of employment

d. activity in which workers walk up and down in frontof a workplace with signs that state their reasons forstriking

e. economic pressure exerted by unions urging thepublic not to purchase a company’s goods or services

Matching: Place a letter from Column B in the blank in column A. (10 points each)

Name Date Class

12, 3

Section Quiz 12–3

ECONOMICS & YOU



ASK: What positive and nega-tive effects can a strike haveon workers? It can bring wageincreases and greater benefitsand security for workers. It alsocan mean lengthy unemploymentand future job insecurity due tothe company’s loss of revenuesand consumer confidence.


Collective Bargaining in Japan When labor contracts expire in Japan, unions oftenstage a brief work stoppage to show their power and influence. After workers havereturned to work, union and management leaders meet to hammer out a new contract.


335


Americans at Work

• The civilian labor force is the total number of peo-ple 16 years old or older who are either employedor actively seeking work.

• Workers in the United States are categorizedaccording to the type of work they perform—blue-collar, white-collar, or service worker.

• Another way to categorize workers is by the skillsrequired to perform their occupation—unskilled,semiskilled, skilled, or professional.

• Three major factors—skill, type of job, and loca-tion—affect how supply and demand determineprices, or in this case wages, in the labor market.

• Factors that restrict supply and demand in terms oftheir influence on wages include minimum wagelaws and organized labor.

Organized Labor

• A labor union is an association of workers organ-ized to improve wages and working conditions forits members.

• Workers began to form unions to force employersto improve working conditions, shorten the work-day, and end child labor.

• For much of its history, organized labor in theUnited States has been split into two groups: craftunions and industrial unions.

• Organized labor operates at three levels: the localunion, the national or international union, and thefederation.

• Local unions may negotiate a union shop or anagency shop.

Collective Bargaining

• Collective bargaining is the process by whichunions and employers negotiate the conditions ofemployment.

• Labor and management may negotiate workinghours, wages, fringe benefits, and a cost-of-livingadjustment (COLA).

• If negotiations become hostile or compromisebreaks down, labor and management may trymediation or arbitration.

• Striking unions may use picketing or a boycott toexert economic pressure against a firm.

• When faced with a strike, management may use alockout or an injunction against strikers.

• The percentage of union members among the laborforce reached a high in the mid-1940s and hasbeen declining since 1955.

C H A P T E R

SECTION 1

SECTION 2

SECTION 3

Chapter Overview Visit the Economics Today and Tomorrow Web site at ett.glencoe.comand click on Chapter 12—Chapter Overviewsto review chapter information.

12

Use the Chapter 12 Summary to preview, review, condense, orreteach the chapter.

Preview/ReviewVocabulary PuzzleMaker Soft-

ware reinforces the key terms usedin Chapter 12.

Interactive Tutor Self-Assess-ment Software allows students toreview Chapter 12 content.

CondenseHave students listen to the

Chapter 12 Audio Program (alsoavailable in Spanish) in the TCR.Assign the Chapter 12 Audio Pro-gram Activity and give students theChapter 12 Audio Program Test.

ReteachHave students com-

plete Reteaching Activity 12 in theTCR (Spanish Reteaching Activitiesare also available).

C H A P T E R 12

ECONOMICS & YOU



If you do not have accessto a videodisc player, theEconomics & You programs arealso available in VHS.

Categories of Workers Over a one-week period, have students keep note of theemployed people with whom they come into contact. Students should record the jobs thesepeople do. Next to each job, have students classify it as unskilled, semiskilled, skilled, or pro-fessional. At the end of the recording period, have students select one of the jobs they listed.Direct them to interview the people who do these selected jobs. Interview questions shouldinclude: How did you get this job? What skills or special knowledge did you need to gethired? What skills or special knowledge did you need to acquire on the job? What do yousee in the future for your job? Have students write a brief report summarizing their findings.

Economics Journal

Study &Writing Skills

334

Your teacher has assigned a major research report, so you go to the library. As you wander the aislessurrounded by books, you wonder: Where do I start my research? Which reference works should I use?

Study & Writing Skills

Practicing the SkillSuppose you are assigned

a research report dealing withthe famous labor leadersSamuel Gompers and EugeneV. Debs. Read the questionsbelow, then decide which ofthe sources described on theleft you would use to answereach question and why.1. During which years did

the men lead their unions?2. What were the most

famous labor actions eachdealt with?

3. How did the public react tothe labor unions’ activities?

4. What benefits do we enjoytoday as a result of thesetwo labor leaders?

Application ActivityUsing library resources, research the origins and

important leaders of the American Federation of Labor.Present the information you find to the class.

Using Library Resources

• Encyclopedia: set ofbooks containing shortarticles on many subjectsarranged alphabetically

• Biographical dictionary:brief biographies listedalphabetically by lastnames

• Atlas: collection of mapsand charts

• Almanac: annuallyupdated reference thatprovides current statisticsand historical informa-tion on a wide range ofsubjects

• Card catalog: listing ofevery book in the library,either on cards or com-puterized; search forbooks by author, subject,or title

• Periodical guide: set ofbooks listing topics cov-ered in magazines andnewspaper articles

• Computer database:collections of informationorganized for rapid searchand retrieval

Learning the SkillLibraries contain many resources. Listed on the left

are brief descriptions of important ones.



Click on an item for more details :

Grandview Heights Publ ic L ibrar y

Start Over

Menu Back Search Exit Help

Back Sort List Help Other Locations Limit Search

F i le Commands Screen

PRTmore

Help

Your Search: Congress

AUTHOR/TITLE DATE

1. Lewis, Finlay. 1980

2. United States. Congress. House 1969

Aliens in the skies; the scientific rebuttal

3. Newfield, Jack. 1969

Robert Kennedy; a memoir.

4. United States. Congress. House 1971

Thirty years of treason; excerpts from hearings

5. Reeves, Thomas C., 1936– 1982

The life and times of Joe McCarthy; a biography

6. McCarthy, Agnes. 1965

Worth fighting for; a history of the Negro in

America

Computerized card catalog

334

Using Library ResourcesRead through the list of

resources—providing actual exam-ples, if possible—and note the typesof information that each provides.Inform students that these resourcesusually can be found in the refer-ence section of the library. Thenpoint out that the reference libraryhas one more very useful resource—the librarian. Asking the librarianfor guidance can save a great deal oftime if students are researching atopic they know little about.

Work through the questions inthe Practicing the Skill section,making sure that students under-stand why certain resources aremore appropriate for locating partic-ular kinds of information. Finally,assign the Application Activity.

Glencoe SkillbuilderInteractive Workbook,Level 2

This interactive CD-ROM rein-forces student mastery of essen-tial social studies skills. Answers to Practicing the Skill

1. Biographical dictionary or encyclopedia—these sources would provide a quick methodof finding this specific information. An almanac might also reveal this information.

2. Card catalog or computer database—these sources would provide titles of books inwhich this broad information might be included.

3. Periodical guides might direct researchers to articles on this subject.4. Card catalog, computer database, or periodical guides would be best to find informa-

tion on this specialized information.

Application Activity Encourage students to identify the resources they used and why.

U SING LIBRARY RESOURCESLibraries contain many resources. These resources include traditional resources, such as ency-clopedias, atlases, almanacs, and periodicals, as well as online resources, such as computerdatabases and access to the World Wide Web. Knowing which resources to use will improvethe quality and efficiency of your research.

Directions: You are writing a term paper on trade between the United States and Japan. To make thereport interesting, you want to include many real-world examples. You also want to make sure that yourreport covers very recent developments. Choose sources from among the following:

Business Week, Fortune, Forbes––business magazines published weeklyStatistical Abstract of the United States––published yearlyWorld Almanac, Information Please Almanac––published yearlyWorld Development Report––published yearlyThe World Wide Web

1. What source would you use to find out the value of Japan’s exports to the United States between 1985 and 1995?

2. What source would you use to find out how economic conditions in Japan differ from economic conditions inthe United States?

3. Where would you find examples of U.S. businesses that have been successful in Japan?

Name Date Class

27

Reinforcing Economic Skills 27

CHAPTER 12Assessment and ActivitiesCHAPTER 12

Assessment and Activities

337


Thinking Critically1. Determining Cause and Effect Explain why

workers with more education and traininggenerally get paid higher wages.

2. Predicting Consequences Create a diagramlike the one below to explain the factorsthat may cause a decline in union mem-bership in the future.

Applying EconomicConceptsEconomic Costs and Benefits There are costsand benefits for every activity. Strikes are noexception. Many workers believe that the ben-efits exceed the costs or they would not strike.List the benefits to workers of going on strike.Then list the costs of going on strike.

Reviewing SkillsUsing Library Resources Use library resourcesto research one of the following labor strikes:Baltimore & Ohio Railroad Workers, 1877;Haymarket Riot, 1886; Homestead Strike,1892; Pullman Strike, 1894; Anthracite CoalStrike, 1902; Textile Strike in Lawrence,Massachusetts, 1912; Ludlow Massacre inLudlow, Colorado, 1914. Write a reportdescribing the people or groups involved, theconditions that led to the incident, what hap-pened, and the conclusion.

CooperativeLearning Project

Analyze the data that follow for the num-ber of unemployed persons over a five-year

period. Working in groups, compute themean average number of unemployed.

1994 7,996,0001995 7,404,0001996 7,236,0001997 6,739,0001998 6,210,000

Now compute the median average unem-ployment rate for the seven years listed below.

1992 7.51993 6.91994 6.11995 5.61996 5.41997 4.91998 4.5

For help in determining averages, see page xxin the Economic Handbook.

Technology ActivityUsing a Spreadsheet Keep track of theemployed individuals with whom you comeinto contact over a one-week period. Writedown the types of jobs they do. Then usethese jobs as the basis of a spreadsheet show-ing the training, average salary, and prospectsfor growth for each job. Use the Internet orsources such as the Occupational OutlookHandbook or O*Net to find this information.

Declining

Union Membership

France’s trucking union struck in 1997,parking their vehicles on roads and highwaysleading into Paris. Research and report on thereasons for the strike, how long it lasted, theeffect on the economy of Paris, and the resultof the strike.

Applying EconomicConcepts

Benefits: winning strikedemands—higher wages, morefringe benefits, better working con-ditions, more job security, griev-ance procedures that favor workers,and so on. Costs: loss of wages andother benefits, and possible loss ofjob if strike is not settled; negativepublicity because of the strike;actions of management—lockouts,injunctions, use of strikebreakers.

Reviewing SkillsReports will vary. After students

have presented their reports, askthem which resources they used intheir research and why.

CooperativeLearning ProjectMean: 7,117,000

Median: 5.6

Technology ActivitySpreadsheets will vary. Interested

students might want to collate jobinformation by industry or skilllevel to create new spreadsheets.

Analyzing theGlobal Economy

Reports will vary. Have studentspresent their findings to the class.

ASK: What is the major differ-ence between mediation andarbitration? In mediation, thedecision reached is not bindingon the two parties. In arbitration,the decision is binding—the par-ties must accept it.

Chapter BonusTest Question

2. Answers may include: Workers todayreceive better wages and have better work-ing conditions than in the past; more jobsare opening in the white-collar and servicesectors, which have fewer unions; morepeople are working at home.

CHAPTER 12Assessment and ActivitiesCHAPTER 12

Assessment and Activities

Identifying Key TermsIdentify the letter of the definition in Column Bthat correctly defines each term in Column A.

Column A1. unskilled workers2. agency shop3. arbitration4. injunction5. right-to-work law6. closed shop7. boycott

Column Ba. company in which employees are not

required to join a union but must payunion dues

b. refusal to purchase the goods and servicesof a company

c. court order preventing some activity, oftena strike

d. those having no special training in job-related skills

e. procedure for settling undecided issuesbetween labor and management by givingthem to a third party for a final decision

f. company in which only union memberscould be hired (now illegal)

g. forbids contracts that require employeesto join a union

Recalling Facts and IdeasSection 1

1. Which category of worker has a higher-education degree as well as additionaltraining?

2. What is the difference between blue-collar and white-collar workers?

3. What factors determine how much aperson is paid for his or her work?

Section 24. What are the major kinds of labor

unions?5. What two union federations merged in

1955?6. How do right-to-work laws affect workers

who do not belong to unions?

Section 37. Wages are one of the most important

major issues in collective bargainingnegotiations. What are other importantissues?

8. If management and labor have reacheda bargaining deadlock, they may try toengage in mediation. If mediation fails,what is the next possible “friendly” step?

9. What do union workers do when they goon strike?

10. What has been the most recent trendin the importance of labor unions inAmerica?

12

Self-Check Quiz Visit the Economics Today and Tomorrow Web site at ett.glencoe.comand click on Chapter 12—Self-Check Quizzesto prepare for the Chapter Test.

336 CHAPTER 12

336

Identifying KeyTerms1. d2. a3. e4. c5. g6. f7. b

Recalling Facts and Ideas1. professional2. Blue-collar workers are

employed in manufacturing andtrades, while white-collar work-ers are employed in office andservice jobs.

3. skill level, type of job, and location

4. craft unions and industrialunions

5. American Federation of Labor(AFL) and Congress ofIndustrial Organizations (CIO)

6. They protect the right of theworker to continue working at ajob without joining a union.

7. working hours, fringe benefits,working conditions, job secu-rity, and grievance procedures

8. arbitration

9. They stop all work, and they may alsopicket and boycott the company.

10. Union membership has been decliningand, as a result, union power and influ-ence have declined.

Thinking Critically1. Answers may vary, but students should

mention that employers compete with oneanother for better-educated workers byoffering higher wages and fringe benefits.

Have students visit theEconomics Today and TomorrowWeb site at ett.glencoe.com toreview Chapter 12 and take the Self-Check Quiz.

MindJogger Videoquiz

Use MindJogger to reviewChapter 12 content.


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339

eBay’s success was no accident, mostlydue to people Omidyar recruited torun the company. He hiredMeg Whitman as chiefexecutive officer of eBay in1998. Today she is the rich-est female CEO in the world.

eBay has 7.7 million registeredusers, with membership growing at anaverage of 75,000 per week. It has hur-tled past being an auction room for Pez™dispensers and other odd collectibles. It nowoffers some 3.3 million items in 2,500 cate-gories—everything from Star Wars™ toys toantique pottery.

The eBay “Community”Each day, eBay hosts more than 1.8 mil-

lion auctions, receiving about 3 bids persecond. The close interaction that takesplace between buyers and sellers duringthese auctions has helped to create a senseof community among eBay users. In fact,eBay has become a way of life for many.According to surveys, eBay members spendabout 130 minutes a month at the Web site.

Ironing Out Some WrinklesWith so much activity, it is not surpris-

ing that eBay has experienced someinstances of fraud. eBay’s management,however, has established a system called

Safe Harbor to protect buyers from fraudu-lent transactions. It offers such services asproduct authentication and transactioninsurance. Also, through Safe Harbor feed-back, members can report on their experi-ences during auctions. Any person whoreceives a poor feedback rating may be“vaporized”—expelled from eBay.

Future PlansThe rapid rise of eBay has led to the

growth of Internet auction companies. Inresponse, Whitman moved to expand thecompany. In April 1999, eBay acquired a fine-arts auction house through which it plans to host sales of high-priced artitems. In addition, eBay has plans to setup local auction sites for large items, such as automobiles and boats. The com-petition, Whitman states, has been goodfor eBay. “It has made us more nimble,”she says.

Free Enterprise in Action

1. Why might fraud be a problem for a businesslike eBay? What steps has eBay taken tocombat fraud?

2. How has eBay responded to the competitionprovided by other Internet auction sites?

Fiesta®

Pez™

Have students answer the FreeEnterprise in Action questions.

Answers to Free Enterprise In Action1. There is a great deal of activity on the Web site, and with users essentially acting on the

honor system, some fraud is possible. eBay established a system called Safe Harbor,which offers such services as product authentication and transaction insurance. Also,through Safe Harbor feedback, members can report on their experiences during auc-tions. Any person who receives a poor feedback rating may be expelled from eBay.

2. It has expanded, acquiring a fine-arts auction house through which to sell high-pricedart items and setting up local auction sites for large items, such as automobiles andboats.

Focus on Free Enterprise

One night in 1995, while Pierre

Omidyar and his fiancée were hav-

ing dinner, the subject of Pez™ dispensers

came up. She was an avid collector of these

colorful little candy servers. Where, she

wondered, might she meet people with a

similar passion to talk and trade?

Omidyar, a pioneer of online commerce,

knew the place—the Internet.

The Online AuctioneerOmidyar’s idea was fairly

simple: set up a Web site where people with similar interests could meet to buyand sell unique items—the equivalent of an Internet flea market. Omidyar openedthe site—called eBay—in September 1995. A few days later, eBay held its first auction.

An eBay auction follows a set pattern.First, a seller places a description of theitem to be sold, often accompanied by pho-tographs, on the Web site. Next, buyerscheck in and make bids on the item. After aset period of time, usually three to seven

days, the auction is closed and thesale item goes to the highest bid-

der. Six percent of the sale pricegoes to eBay as a commission.

Slow StartAt first, business was

slow. Just 10 people reg-istered to use eBay’s

services in 1995. Intime, however, moreand more people vis-ited the Web site,attracted by theopportunity of find-ing a bargain. In1996, eBay made aprofit of $150,000.By 1998, profits hit$2.4 million.

eBay, Inc.

338

Pierre Omidyar and Meg Whitman

Focus on Free Enterprise

StarWars™

toys

338

Inform students that today eBayis the largest online auction housein the world, and Pierre Omidyarand its other principal officers areamong the world’s richest businessexecutives.

Ask students who have takenpart in a silent auction to describehow this kind of sale takes place.(The item is shown, and bidderswrite their bids—there is usually aminimum starting bid and mini-mum bid raises. After a set periodof time, the highest bidder takes theitem.) Then point out that this,essentially, is how eBay works—except that the auctions take placeonline.

More than 400,000 items areadded daily to eBay’s auction list.Products available for bid includeantiques; books, movies, andmusic; coins and stamps; comput-ers and computer software; dollsand figures; jewelry and gem-stones; photo and electronicequipment; pottery and glass;sports memorabilia; and toys.

There are now more than 50local eBay sites across the UnitedStates. In addition, there are spe-cial eBay Web pages for users inAustralia, Canada, Germany, GreatBritain, and Japan.

The eBay Way of Life Members of the eBay community can meet in chat rooms pro-vided by the company to discuss common interests and concerns. Sometimes, this hasresulted in eBay users from the same geographical area getting together to do charitablework or political organization.


Have students discuss why theythink eBay has been such a greatsuccess.

CHAPTER 12 Resource Manager CHAPTER 12 Resource Manager · 2018. 9. 7. · This innovative integration of electronic and print media offers your students a wealth of opportuni-ties.

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